Scottish Provident has published its claims statistics and reports 93% was paid out in the first half of 2012.
The rejected claims on the grounds of non-disclosure totalled 2%, according to Scottish Provident.
The average payout was £84,743 with the largest being £1m. The average age of a claimant was 49 years old and the youngest adult claimant just 22 years old.
Claims for cancer amounted to 60% followed by heart attack with 16% and stroke 6%.
Susan Barclay, head of marketing at Scottish Provident, said: "All too often the public only get to hear about the few cases where claims have been declined, but with only 2 per cent of our claims rejected for non-disclosure, consumers can be confident that claims will be paid.
"The diagnosis of a critical illness will have a financial as well as an emotional impact on a family and it is extremely worrying that negative stories could discourage people from taking out cover. "
Barclay said financial advisers were necessary in connecting consumers to the protection they needed.
