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Critical illness payouts hit an all-time high in 2008 according to a health insurance survey.

Results of the survey, published in Health Insurance and Protection magazine, showed payouts by Legal & General (L&G) increased the most, up five per cent on 2007 with a 93 per cent payout rate.

Aegon Scottish Equitable and Norwich Union also reported payout rates of 91 and 90 per cent, respectively.

Bernie Hickman, managing director of L&G Protection, said: "Our claims history demonstrates that the measures taken to reduce declined critical illness claims are working."

L&G and other providers have suggested that the reduction in claims being declined for non-disclosure is in part due to new guidelines published by the Association of British Insurers (ABI).

An ABI spokesperson told the publication further work was being undertaken to improve clarity, particularly around the definition of total permanent disability.

The ABI is the trade association for British insurers, which has about 400 members providing 24 per cent of domestic insurance services sold in the UK.

The Insurance Helpline specialises in obtaining cover for people living with medical conditions.

Critical illness cover from Bupa Individual Protection is set to be enhanced by several key changes.

Customers with diabetes or cardiovascular risk will now receive premium discounts, which means clients will not be charged for cover not offered.

This discount is already offered to customers who have cancer or multiple sclerosis.

Bupa has also removed the age limit for conditions such as dementia, Alzheimer’s and motor neurone disease.

Steve Casey, individual protection product and marketing manager, told online news provider Money Marketing: "By removing age limits for many conditions and utilising our international coverage, we have made our product even more accessible, flexible and relevant to more people."

People who are injured abroad also no longer need to fly back to the UK to be diagnosed, provided they can be assessed at one of Bupa’s 1,500 accredited centres around the world.

The money paid out for critical illness cover can be used to pay for medical expenses, mortgage payments, or making adaptations to clients’ homes.

The Insurance Helpline specialises in obtaining cover for people living pre-existing conditions.

Norwich Union (NU) has reported a 14 per cent increase in critical illness cover payouts over the past year.

Figures show the insurer, soon to be rebranded Aviva, settled 1,625 claims during 2008, totalling almost £121 million.

Over the year, the number of claims declined for non-disclosure at the policy’s outset was also down four per cent from 2007.

NU chief underwriter Michael Whyte said it is up to the whole industry to ensure that customers understand the cover they buy.

He added: "We are pleased with our progress on non-disclosure, yet are concerned that we have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy."

The cost of the average claim was £75,000, with cancer remaining the most common cause of a claim (63 per cent), followed by heart attack and multiple sclerosis (both seven per cent).

Aviva is the world’s fifth-largest insurance group and the largest insurance services provider in the UK.

The Insurance Helpline specialises in obtaining cover for people living with pre-existing medical conditions.

The British Heart Foundation (BHF) has warned that new measures on food labelling proposed by the European Commission (EC) this week do not go far enough.

The EC’s plans, announced on Wednesday, would see manufacturers obliged to display six measures on food packaging, showing the levels of energy, total fat, saturated fat, carbohydrates, sugar, and salts contained.

However, the scheme excludes alcoholic drinks and does not include the widely-supported "traffic light" system.

Ruairi O’Connor, policy and public affairs manager at the BHF, said: "We believe the European Commission should have gone a step further and backed mandatory colour coded traffic lights on food labels. Research shows that these are more effective than GDA labels in helping people see what’s in the food they buy."

The EC’s scheme has yet to be approved by the European Parliament and member states, and it could therefore be some time before they become law.

Mr O’Connor added: "We urge MEPs and policy makers in the UK to build on these proposals, and ensure traffic lights are applied on UK food products."

The Insurance Helpline specialises in obtaining cover for people living with obesity.

Life insurance companies play a role in encouraging customers to make healthy lifestyle changes, the Association of British Insurers (ABI) has claimed.

According to the organisation, some providers focus on lifestyle tweaks that improve a person’s mortality and mobility.

"What insurers do is obviously look at demographic trends, but also they look at individual risks presented to them - it is a competitive market, and it will continue to remain competitive," explained a spokesperson for the organisation.

"Insurers have a role to play in encouraging people to adopt healthy lifestyles and recognise where people do adopt healthy lifestyles where that has an implication on their mortality," he added.

With long term life insurance contracts, the ABI’s representative explained, customers do not normally have to disclose changes in their circumstances after a policy has been taken out, providing all relevant information has been provided originally.

Recent ABI figures revealed that 40 per cent of UK households have life insurance, with the industry paying out £17 million in death benefits every day throughout 2006.

The Insurance Helpline specialises in obtaining cover for people living with medical conditions

Flourishing businesses can be hit hard if their key man or key person leaves, it has been suggested.

According to the Economic Times, the sudden departure of key professionals from a growing organisation can have a negative impact on its future prospects, making key man insurance a sensible consideration.

Because of their specialised skills, foresight and business acumen, a key man or key person is relied on to bring greater revenues, profits and brand-value to a firm.

"Simply put, key man insurance is a corporate-owned life insurance cover on key person/persons in a business – directors, key sales persons, key project managers or any person holding substantial responsibility and contributing significantly to the fortunes of that organisation," explained the financial publication.

When a company invests in a life insurance premium on a key employee, it becomes the beneficiary of the policy if that person dies unexpectedly; this arguably makes key person insurance invaluable for helping a company survive the blow of losing someone who "makes business happen".

Gersten Savage, one of New York’s top five independent law firms, recently highlighted that key man insurance is one notable aspect of a growing interest in best practices displayed by business managers.

The Insurance Helpline specialises in obtaining cover for people living with medical conditions

Wide differences between critical illness insurance policies and the conditions they cover mean individuals should do their homework before settling on a plan.

That is the conclusion of independent financial experts IFA Brokers, who have recommended that anyone seeking critical illness cover should do it sooner rather than later.

"Choosing the right plan can be tricky; policies vary widely in the illnesses they cover and simply opting for the cheapest plan can often offer limited cover," observed a spokesperson for the organisation.

"On the other hand, opting for a policy that covers everything from anthrax to yellow fever may not be the most appropriate. Policies that appear to cover every serious illness imaginable are sometimes merely an excuse for the insurer to charge higher premiums," the representative continued.

With serious illness affecting one in four women and one in five men before they reach retirement age, critical illness insurance is designed to ease financial pressures by paying a tax-free lump sum if an individual becomes seriously ill or disabled.

IFA Brokers noted that rises in claims and the cost of advances in medical technology have led many insurers to cut back on the conditions they cover, or to impose restrictions on what counts as a critical illness.

The Insurance Helpline specialises in obtaining cover for people living with medical conditions

A woman suffering with a tumour in her brain has been told her condition is not covered by her critical illness policy.

Mary Ryan’s insurer informed her that the tumour, for which she may need treatment for the rest of her life, is the "wrong kind", reports the Observer.

According to the newspaper, Ms Ryan’s £100-a-month lifetime cover with Skandia was intended to pay for her mortgage in the event of a serious illness.

After being diagnosed with a benign growth-hormone-secreting pituitary tumour, she had it partially removed and then targeted with radiation, although she has been left with some residual tumour.

Insurance company Skandia rejected Ms Ryan’s subsequent claim on the grounds of a technicality that "cancers in the body must be malignant", with tumours in the pituitary gland or spine excluded.

"Skandia’s critical illness contract is designed to pay an accelerated benefit on the diagnosis of a critical life-changing event," a spokesperson for the firm told the Observer.

"If adequately treated, pituitary tumours are not considered to be life-threatening and should not result in any significant long-term disability," the representative continued.

Ms Ryan’s neurosurgeon, Michael Powell, pointed out to the paper that although her tumour was benign, the company’s restriction is "totally unreasonable".

The Insurance Helpline specialises in obtaining cover for people living with medical conditions

Winter sports fans have been warned to get fit to avoid insurance difficulties after they hit the slopes.

According to the latest research from Halifax Travel Insurance, more than a third of the UK’s winter adventure-seekers were "woefully out of shape" for last year’s trips.

"We process a significant number of claims each year from skiers and boarders that have been forced to cut their winter holiday short as a result of an injury," explained Paul Birkhead, senior manager of pricing and underwriting for Halifax Travel Insurance.

"Clearly prevention is better than the cure, and a few months of pre-holiday training can help you to cope with the strain of winter sports, as well as to build up your stamina," he continued.

Those polled by the insurer who had injured themselves through a lack of fitness lost an average of four days away from the slopes to look after their injuries.

Insurance experts recommend that people with high-risk jobs or hobbies thoroughly explore their cover options.

A large proportion of adventure enthusiasts recently admitted that they make up cover on credit cards or home insurance deals.

The Insurance Helpline specialises in obtaining cover for people with high risk jobs or hobbies

People with pre-existing medical conditions ought to talk to specialist insurers when looking for the best travel insurance deal, it has been claimed.

According to the Association of British Insurers (ABI), travellers who have been diagnosed with cancer often find it difficult to find cover as the average high street policy is designed as "one size fits all".

"It doesn’t provide cover for people with pre-existing medical conditions, so it excludes them from medical cover," confirmed the ABI’s Kelly Ostler.

"When you have extra needs, be it a pre-existing medical condition such as cancer, or you are going on a winter sports holiday then you need to look at a different policy," she continued.

"There are plenty of specialist insurers out there, so it is a case of going to one of those, and shopping around."

In June 2006, research carried out by the charity Cancerbackup found that 70 per cent of sufferers who tried to find travel insurance found the experience distressing, while 90 per cent found it difficult or impossible to find cover at all.

The Insurance Helpline specialises in obtaining cover for people living with medical conditions