Legal & General paid a total of £441 million combined death and critical illness claims in 2011, up from £373 million in 2010 and a new record for the firm.
The insurer paid 93.2% of critical illness claims in 2011, with cancer as the number one reason for a claim.
A total of 2,784 claims were paid, at an average amount of £63,573.
Russell Whitworth, underwriting and claims director at Legal & General said: "We continue to work hard to reduce non-disclosure and less than 3% of claims in 2011 were repudiated purely for medical non-disclosure.
"Less than 5% were for claims not meeting the definition as set out by the ABI of Best Practice for Critical Illness which Legal & General adheres to.
"These figures highlight the importance of critical illness cover for everyone.
"I am very proud of these figures."
