It has been revealed that over 100 families and individuals a day were helped by life insurance cover, during their most difficult times, in 2008.

The average claim paid out was £52,000, double the average UK salary. The number of critical illness claims also increased. In 2008, 90% of all CI claims were paid, up from 80% in 2005. In addition, 97% of term life insurance claims were paid in 2008.

This is a result of the success of the ABI Code of Practice on CI Insurance that has led to less claims being declined due to non-disclosure of medical information.

Nick Starling, the ABI’s Director of General Insurance and Health, said: “The insurance industry pays out £5.9m every day in life and critical illness insurance claims, making a real difference to people’s lives at the most difficult of times.

“Insurance companies want to pay all valid claims, which is why the ABI is not complacent and continues to look at ways to reduce the number of claims declined even further.”

“The new ABI code is making a dramatic improvement to the number of critical illness claims we pay. We have been working with the Law Commission so that the principles of our Code are embedded into law.”