When it comes to Life Insurance, Critical Illness Cover, or Income Protection, many people ask the same question:
“Will the insurance company actually pay out if something happens?”
It’s a perfectly reasonable question.
That is why annual claims statistics are so important. They show real outcomes rather than marketing promises.
According to Royal London’s official Our 2025 Claims Statistics report, published in June 2026, the company paid 98.4% of all protection claims submitted in 2025. Total claim payments exceeded £821 million, providing financial support to more than 62,000 customers, family members, and businesses.
These figures help us better understand the role financial protection plays in the lives of people across the UK.
What do the numbers show?
During 2025, Royal London paid:
- more than £258 million in Life Insurance claims;
- more than £197 million in Critical Illness claims;
- more than £68 million in Terminal Illness claims;
- more than £9 million in Income Protection claims;
- more than £282 million in Whole of Life claims.
Behind every number is a real family facing a difficult situation.
And it is during these moments that the true value of insurance becomes clear.
What were the most common reasons for claims?
One of the most frequently used forms of protection continues to be Critical Illness Cover.
According to the report, 64.3% of all Critical Illness claims paid were related to cancer diagnoses.
Other common causes included:
- heart attacks;
- strokes;
- multiple sclerosis.
These statistics highlight an important reality: serious health conditions can affect people of any age and profession.
Many people assume such situations are rare.
The data suggests otherwise.
Why is Income Protection becoming increasingly important?
When people think about insurance, they often think about serious illness or the loss of a loved one.
However, there is another significant risk: temporarily losing the ability to work.
In 2025, more than 1,300 customers received Income Protection payments, with total payouts exceeding £9.6 million.
This type of protection can be especially valuable for:
- self-employed individuals;
- CIS workers;
- business owners;
- families that rely on a single primary income.
If illness or injury prevents someone from working for several months, Income Protection can help cover:
- mortgage payments;
- rent;
- utility bills;
- day-to-day family expenses.
Why were some claims declined?
An important point highlighted in the report is that most declined claims were not due to the illness itself.
One of the most common reasons was inaccurate or incomplete information provided when the policy was originally taken out.
This is why it is essential to answer all application questions honestly and accurately.
Even seemingly minor omissions can affect a future claim outcome.
What does this mean for families in the UK?
Insurance is more than just a policy document.
For many families, it forms part of a wider financial plan alongside mortgages, savings, and retirement planning.
When someone takes out Life Insurance, Critical Illness Cover, or Income Protection, they are not simply purchasing a potential payout.
They are investing in financial security and peace of mind, knowing their family could receive support if life takes an unexpected turn.
That is why more and more people across the UK see financial protection as an important part of their long-term financial strategy.
Source of Information
The information presented in this article is based on Royal London’s official Our 2025 Claims Statistics report, published in June 2026. According to the report, Royal London paid 98.4% of all protection claims, totalling more than £821 million and supporting over 62,000 customers, families, and businesses.
Would You Like to Understand What Type of Protection Is Right for You?
During a consultation, we can help you understand:
- the difference between Life Insurance and Critical Illness Cover;
- how Income Protection works;
- what type of protection may be suitable for your family;
- and how much that protection could cost based on your circumstances.
You can book a consultation with our team through the contact form on our website – https://calendly.com/platniuc-inna/1-hour-phone-call
