Detailing its 2012 figures today, the firm said 98 per cent of life claims and 88 per cent of critical illness claims were paid out by the firm.
Those claims that the firm rejected were due to non-disclosure or failing to meet the defined requirements.
Since 2000, life claims paid out by Scottish Widows have totaled over £932m while critical illness claims total £574m. There have been 27,435 life cover claims and 14,109 critical illness cover claims.
For life claims, the most common illness was cancer which affected 54 per cent of people followed by heart conditions which affected 18 per cent. The average age of a claimant was 57 years for woman and 58 years for men.
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Cancer was also the most common reason for critical illness claims, affecting 62 per cent of people. This was followed by heart related illness and strokes although seven per cent of females claimed for multiple sclerosis.
Katya Maclean, head of bancassurance enablement and protection at Scottish Widows, said the firm was looking into the reasons people take out cover.
She said: "We have supported over 40,000 individuals and families and the £4m we paid in life and critical illness claims every week last year shows the value of taking out cover.
"We will continue to work with the industry to change the traditional trigger points at which people purchase protection products away from simply taking out a mortgage."
The firm, a corporate member of the Institute of Financial Planning, said it was planning to launch into the intermediary protection market in late 2014. Esther Dijsktra has been hired as head of intermediary protection propositions.

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