The insurance company has paid out over £150m for over 4,540 critical illness claims from 2000 to 2007.

Scottish Widows has revealed that these payments included more than £29m for over 847 critical illness claims last year. Making it the second year the company has increased its amount of successful claims.

The insurer also revealed that 95% of the critical illness claims came under five categories:

 - Cancer represented 61%

- Heart-related claims made up 21% of critical illness claims

- Stroke claims accounted for 7%

- Multiple sclerosis accounted for 4%

- And children’s cover accounted for 2%

Scottish Widows protection market director, Richard Jones, said: ‘The need for financial protection for both the family and business has never been greater, especially with more families relying on two incomes and the increase in the number of people who are self employed.’