Life insurance top five FAQs

Here are the top five most frequently asked questions we've been asked about our life insurance.

What is LV= Life Insurance?

 LV= Life Insurance is designed to provide a one-off lump sum payment if you die before the end date of your plan. Also, you can ask us to pay out on your plan if you're diagnosed with a terminal illness. However, we'll reduce the amount we pay you by 3%. The cash could be used to pay off a mortgage or provide a lump sum to ease the financial worries for your family. It’s aimed at people who don’t drink a lot, don’t smoke a lot, and are generally healthy. Of course this doesn’t mean that you can’t apply if you aren’t healthy, do drink a lot, or smoke a lot, it just means that you may have to pay a higher premium or you may not be accepted for this plan. We have a range of other protection plans, so if you aren’t accepted for this plan, we may still be able to insure you under one of our other protection policies. You can apply for LV= Life Insurance either on-line or over the telephone.

What am I covered for?

You're covered if you die before the end date of your plan. The plan pays out a cash lump sum (your amount of cover), that can be used as you wish. You can also ask us to pay the amount of cover if you are diagnosed with a terminal illness. However, we will reduce the amount of cover we pay out to reflect the fact that we are paying out on your plan even though you have not died. We currently reduce the amount of cover by 3%. Please see section A6 of the Plan Conditions for more information on this.

Is there anything I'm not covered for? 

Yes. If you're diagnosed with a terminal illness within 12 months of the end date of your plan, we won’t pay out a terminal illness claim. More details can be found in section A1 of the Plan Conditions.

You’re covered if you die anywhere in the world. However if you ask us to pay out the amount of cover early because you're diagnosed with a terminal illness, we’ll need this diagnosis confirmed by a doctor who practices in one of a certain number of counties. We’ve explained this is more detail in Section A1 of the Plan Conditions.

If you've taken this plan out to protect a loan or a mortgage, and have chosen decreasing cover, then the amount we pay out if you die is not guaranteed to repay the mortgage or loan in full. More details on this can be found in Section A2(b) of the Plan Conditions.

We may not pay a claim, and could cancel your plan if we find that you have deliberately withheld information from us, or intentionally provided us with false information, or lied to us when you applied for your plan or when you make a claim. More information on this can be found in Section C6 of the Plan Conditions.

Can I change my cover?

 If you wish to change the amount of cover, the end date of your plan, or change the type of cover you have, you’ll need to apply for a new plan. We understand that when times are hard, you might be finding it difficult to keep paying your premiums. If this happens, please let us know, as we may be able to reduce your amount of cover, or shorten the term of your plan for you. This means your premium will be lower. Of course it’s important to realise that if you reduce your amount of cover, or shorten the term, and you wish to increase them again in the future, you’ll have to apply for a new plan.

What types of cover can I choose?

You can choose:

Level cover - This means the amount of cover and the premium you pay is fixed when your plan starts, and doesn’t change. This means that as the cost of living increases, your cover will buy less.

Decreasing cover - This type of cover is designed to cover the reducing amount owed on a capital and interest repayment mortgage. The amount of cover will go down each month, but the premium you pay is fixed when your plan starts and doesn’t change.

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