Protection Insurance Pays Off: What Royal London’s 2025 Claims Statistics Mean for You
When it comes to financial planning, many people focus on growing their wealth through pensions, investments, and savings. However, understanding Protection insurance claims statistics 2025 can play a crucial role in making more informed decisions for your financial future.
While these are all important, protecting your income, family, and lifestyle is just as crucial.
The reality is that life can be unpredictable. Illness, injury, or death can have a significant financial impact on individuals and their families.
That is why protection insurance remains one of the most valuable yet often overlooked areas of financial planning.
The latest protection claims statistics from Royal London for 2025 provide a powerful reminder of why having the right cover in place can make such a difference when the unexpected happens.
£821 Million Paid Out in Claims During 2025
Royal London paid a total of £821 million in protection insurance claims during 2025, helping more than 62,000 customers, families, and businesses at some of the most challenging times in their lives.
Even more encouraging is that 98.4% of all claims were paid, demonstrating that protection policies are delivering on their promises when customers need them most.
The payments included:
- Over £282 million in Whole of Life claims
- Over £258 million in Term Life Insurance claims
- Over £197 million in Critical Illness claims
- Over £68 million in Terminal Illness claims
- Over £9 million in Income Protection claims
- Over £5 million in Total Permanent Disability claims
These figures highlight the real-world value of protection insurance and the financial support it can provide when families face difficult circumstances.
Protection Claims Are More Common Than Many People Think
One of the biggest misconceptions about protection insurance is that claims are rare.
In reality, the statistics tell a different story.
More than 21% of customers who claimed in 2025 did so within the first five years of their policy starting.
This demonstrates that serious health issues and unexpected life events can occur at any stage of life, often sooner than people expect.
The age profile of claimants was also revealing.
While claims were most common among those aged between 50 and 64, Royal London paid claims to customers across a broad age range. The youngest claimant was just 19 years old, while the oldest was 102.
This reinforces an important message: illness and unexpected events do not discriminate based on age.
Read about other insurers’ payouts
Why Financial Protection Matters
For many households, their greatest financial asset is not their savings or investments but their ability to earn an income.
If illness or injury prevents someone from working, the financial consequences can quickly become severe.
Mortgage payments, household bills, and everyday living costs do not stop simply because a person is unable to work.
Protection policies such as Life Insurance, Critical Illness Cover, and Income Protection can help provide financial security during these challenging periods.
As independent financial advisers, we often find that clients understand the need to insure their homes, cars, and possessions, yet many have not considered protecting the income that supports everything else.
The 2025 claims data serves as a timely reminder that protection planning should form a key part of any comprehensive financial strategy.
Support Beyond a Financial Payout
Modern protection plans often provide far more than just a lump sum payment when a claim is made.
Royal London’s Helping Hand service, available with advised protection plans, continued to support customers throughout 2025.
The service connects clients with specialist nurses and wellbeing professionals who can provide practical and emotional support during difficult times.
Usage of the service continued to grow significantly, with:
- GP appointments increasing by 21%
- RedArc nurse support increasing by 12%
- More than 1,000 customers and families receiving personalised support
Additional services available to policyholders include:
- 24/7 virtual GP consultations
- Online physiotherapy support
- Mental wellbeing assistance through NHS-approved tools
These benefits can provide valuable support long before a claim is ever needed.
The Value of Professional Financial Advice
A protection policy is only effective if it is suitable for your circumstances and arranged correctly.
As independent financial advisers, our role is to help clients identify potential financial risks and recommend solutions that match their personal and family needs.
We also find the right policy and company for you, and Royal London is just one of many.
The right protection strategy can help ensure that:
- Your family is financially secure if you die unexpectedly
- You have support if diagnosed with a serious illness
- Your income is protected if you cannot work due to illness or injury
- Your mortgage and other financial commitments remain manageable
Importantly, advice helps ensure you avoid gaps in cover and understand exactly what protection you have in place.
Final Thoughts
Royal London’s 2025 claims statistics provide compelling evidence that protection insurance works.
With £821 million paid out and 98.4% of claims successfully settled, these figures highlight the vital role protection can play in safeguarding financial wellbeing.
As Royal London’s Head of Propositions, Fi Wynn, explains:
“Paying claims is at the heart of the promise we make to our customers. That’s why we’re continually investing in our proposition to help us pay as many valid claims as possible, quickly, consistently and with care, so we can be there for our customers when they need us most.”
While nobody likes to think about illness, injury, or death, planning for these possibilities can provide invaluable peace of mind. The right protection cover can help ensure that you and your loved ones remain financially secure, regardless of what life may bring.
If you would like to review your existing protection arrangements or discuss whether you have sufficient cover in place, speaking with an independent financial adviser can help you make informed decisions about protecting your financial future.
This article is for information purposes only and does not constitute financial advice.
Tax treatment depends on individual circumstances and may change in future. Investments can fall as well as rise in value, and you may get back less than you invest.
Source: Royal London UK Intermediary Protection Business Claims Paid (1 January to 31 December 2025).
