The average payment on critical illness policies rose to £73,669 in the first six months of the year, according to Scottish Provident.
Overall Scottish Provident will be paying £60 million on critical illness cover by the end of the year - the highest annual figure paid by the insurer since its introduction in 1996.
The number of people making a successful claim is also rising, with more then 3,600 claims from January to June, compared with just over 2,000 claims in the previous six months.
"The last thing anyone wants to worry about when they suffer a critical illness is money," Sue Wilkinson, head of life and health propositions at Abbey, said.
"By telling people about the amount we pay out and the types of illnesses that people claim for, we can show the true value of critical illness cover- the claims figures speak for themselves.
"This research shows that critical illness cover is worthwhile and that it does exactly what it's supposed to do and pays out when people need it most."To read more about health insurance, click here.
© DeHavilland Information Services plc