GUARDIAN insurance pays out 92% of terminal illness claims “well above the usual industry range” of 55% to 60%, experts say.
Guardian paid a record of almost £31.7 million to customers and their families in 2025, 48% higher than in 2024, it has revealed in new figures.
In total, Guardian paid 297 life, terminal illness and critical illness claims during 2025, paying 91% of all claims received.
The insurer paid 100% of children’s critical illness claims, alongside 92% of terminal illness claims, 90% of adult critical illness claims and 87% of life claims.
Experts said the usual industry range for terminal illness is around 55% to 60% – so 92% is very high.
While experts said the 87% of life cover claims is surprisingly low, as most providers reach 98% or 99%.
Protection
Carlton Hood, Chief Executive Officer at Guardian, said: “When people take out protection, they’re planning for the unexpected. Our job is to be there when those moments happen, providing financial support when it’s needed most.
“We’re proud that more customers than ever benefited from Guardian’s protection in 2025, and of the role our people, advisers and products played in delivering on the promises we make.”
Oliver Jordan, Director at Watford-based Check Financial, said the quirks in the figures may be due to Guardian being a smaller provider.
He added: “Because Guardian is a relatively new player in the market, the number of claims is quite small compared to some of the ‘big boys’. This means a blip in non-disclosure, can have a marked impact on the percentage of claims paid. No insurer wants to decline claims, however, when you look at some of the examples Guardian has quoted, you can see why the claims were not paid.
“Some of them, self-evidently, were clients trying to ‘pull a fast one’ – potentially more clients applied with them due to Guardian recording 100% claim-to-pay ratio for the previous years. Regarding the terminal illness benefit, for all other providers, there is a 12-month life expectancy requirement.
“When you factor in that most of these cases are cancer-related and known difficulties with doctors confirming there are 12 months or less to live, it is not surprising that Guardian’s market leading wording, pays out a much higher percentage.”
Matt Coulson, Founder at Rickmansworth-based Heron Financial Ltd, praised Guardian.
He added: “For me the most interesting thing sits behind the percentages. Guardian came into a settled market and pushed the bar up on critical illness cover, and they’ve kept that focus on product quality and genuine innovation ever since.
“You can see it in the figures, with children’s critical illness at 100% and terminal illness well above the usual industry range. I’d be wary of reading too much into the life cover line on its own. With 297 claims in a single year the percentages move on very few cases, and this is a newer insurer with a growing book, so one year tells you far less than the direction of travel.
“Protection is a big part of what we do, and the consistent truth across the market is that these policies pay out the large majority of the time. Where a claim isn’t paid, it’s usually down to something not disclosed properly at outset. That’s the real lesson for anyone buying a home: the cover people are quickest to skip does its job when it matters, if it’s set up accurately.”
Growing book
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said his “hunch” was that the difference was caused by the sample size.
He added: “92% on terminal illness is the number that stops you when the market typically manages 55% to 60%. My hunch is sample size.
“With 297 claims in total, a handful of cases swing the percentages wildly, and Guardian is still a young book. Worth watching, though, and worth factoring into protection advice.”
