Critical Illness Payouts Increasing 09/12/2004

Critical Illness insurer, Scottish Provident says that the average payout is going up, while the age of the people who claim on them is coming down.

The average payout on Scottish Provident critical illness claims stood at £73,669 in January - June 2004, compared with £66,016 in 2002.

The total amount paid out is set to reach £60 million by the end of the year - the highest annual figure paid by the insurer in critical illness claims since their introduction in 1996. That is double the average yearly claims figure of £30million.

Meanwhile, the average age of claimants is now only 41, compared with an average age of 44 two years ago. More than a quarter of all claims paid in the first half of 2004 went to people under the age of 40.

Sue Wilkinson, head of life and health propositions at Abbey, said: "The last thing anyone wants to worry about when they suffer a critical illness is money.

"By telling people about the amount we pay out and the types of illnesses that people claim for, we can show the true value of critical illness cover- the claims figures speak for themselves.  This research shows that critical illness cover is worthwhile and that it does exactly what it's supposed to do and pays out when people need it most."