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LV= launches income protection product for harder to insure clients

Press release: 29/05/2014

Protection specialist LV= today launches a new underwritten income protection product, ‘Personal Sick Pay’.

‘Personal Sick Pay’ has been developed in response to adviser feedback and is for those clients whose jobs are typically more expensive to insure - like manual workers, tradespeople, teachers, nurses and drivers. It also offers income protection cover for clients whose situation makes it more difficult to prove their earnings, such as those who are self-employed or regularly move jobs.

Personal Sick Pay provides ‘own occupation’ cover with a full or two year budget [1] version available. It has also been built in LV=’s Flexible Protection Plan, so it’s available alongside critical illness and term insurance, the first time a product like this has been available in a menu.

The price a client pays each year is based on their age that year so will normally go up with age, and the cost is not affected by their job type, or whether they smoke. Future prices are made available to advisers and their clients up front, with the option for either reviewable or guaranteed future price tables.

If a client normally works at least 30 hours a week they can have up to £1,000 a month insurance, with no financial checks at application or claim, regardless of any other income being received, such as sick pay, other insurance or state benefits. LV= will provide cover of up to 60% of a client’s earnings before tax (or 60% of net profit for the self-employed), for those who want more than £1,000 a month.

Clients can also choose ‘back to day one’ cover which means LV= will pay out from the first day they stopped working, as long as they’re off for three days in a row. This is a useful feature for advisers whose clients wouldn’t receive sick pay, for example those who are self-employed or contract workers.

Richard Rowney, Managing Director of LV= Life and Pensions said: “As market leaders in intermediated income protection we wanted to provide a quality alternative solution in the ‘harder to insure’ space. Anyone can get sick or have an accident at any time, but the risks increase for clients in more physical or stressful jobs – so income protection can usually be expensive for them. We can now offer quality own occupation cover for a greater number of people at a much lower starting price through Personal Sick Pay.”

“When designing this product we worked hard to ensure that, like our existing protection products, it is easy for advisers and their clients to understand the level of cover they would receive, and how much they would be paying for it. We are pleased to be able to offer the first £1,000 a month with no financial underwriting at application or claim, and are grateful to all the advisers who took the time to feedback and help us shape our proposition in a way that makes it truly meaningful for clients. We hope that our latest product will give advisers yet more reason to talk to clients about the importance of protecting their income”

The key points of LV=’s personal sick pay insurance include:

  1. Provides own occupation cover
  2. Full and budget versions available
  3. The price you pay each year is based on a client’s age and increases as they get older
  4. Premiums are not affected by a client’s job or whether or not they smoke
  5. As long as a client works at least 30 hours a week they can have up to £1,000 a month insurance, with no financial checks at application or claim. LV= guarantees not to reduce this first £1,000 if a client receives any other income, even sick pay or insurance
  6. Above this, a client can insure up to 60% of their income with no deduction of state benefits
  7. ‘Day One’ option has a zero week deferred period for clients with no financial safety net as long as they’re off at least 3 days in a row
  8. Option for weekly claims payments so a client gets their money more frequently
  9. Option for reviewable or guaranteed future prices table (age costed premiums)
  10. Part of LV=’s Flexible Protection Plan, recommend alongside Term or Critical Illness
  11. Shorter, jargon free literature
  12. Available on all the main portals
  13. Competitive pricing
  14. For further details about Personal Sick Pay, please go to

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For further information please contact:

Addy Frederick, LV=, 020 8256 6909,

Notes to editors

[1] LV=’s budget income protection policy is underwritten under the same contract as its full income protection policy, but pays out for two years rather than until the policyholder returns to work.

About LV=

LV= employs 5800 people and serves over 5.5 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Liverpool Victoria Friendly Society Limited: County Gates, Bournemouth BH1 2NF

LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies. LVFS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered address: County Gates, Bournemouth BH1 2NF.