Tom Baigrie, chief executive of LifeSearch, described the difference between the percentage of claims people think protection insurers pay out each year compared to the real number as “staggeringly disappointing”.

The average person surveyed by LifeSearch believed insurers paid out 38% of all life cover, critical illness and income protection claims each year. However, the real answer was over 90%, according to the firm.

“Protection insurers pay out on the vast majority of claims year-on-year, but unfortunately this is contrary to popular belief. Recent high-profile media, and social media campaigns, on cases where a claim has been rejected gives the impression that these very few cases are the norm, and providers will wriggle out of paying a claim at any cost,” Baigrie said.

Research also found that £6m was paid out every day in 2012 to cover claims and the youngest person to claim on a critical illness policy in 2012 was 19 years old.

“There is clearly a big job to be done in helping people understand what the protection industry does.

“Most insurers that sell protection publish their claims stats each year, for life, critical illness and more recently income protection. This enables us to show that the overwhelming majority of claims are paid year-on-year, and when they are not paid, being able to explain clearly the reason to people, so they can have confidence their cover will do what they need it to if they make a claim,” Baigrie said.

Click here to see an infographic highlighting more facts and figures on protection claim payouts.