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Catch up with the latest press releases from LV=

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LV= reveals protection gender plans and launches G-Day guarantee

Press release: 20/09/2012

Protection specialist LV= will switch its protection business[1] to gender neutral rates on 1 December 2012, and is offering advisers a ‘G Day Guarantee[2]’ ahead of the gender directive coming into force on 21 December 2012.

Switching to gender neutral rates ahead of the legislation enforcement provides certainty for advisers, and ensures applications in the pipeline by 1 December can be processed on gender specific rates ahead of the 21 December deadline.

If by 1 December an application has further medical evidence outstanding, LV= will offer a ‘G Day Guarantee’ to ensure the business can still be placed on gender specific rates in time.

LV= will underwrite the application based on the medical information provided by the client at application, and using normal underwriting standards will offer them a premium and terms. If accepted by the client, the application will be put on-risk for the full cover applied for on gender specific rates, to beat the 21 December deadline. LV= will then seek the additional medical evidence as normal, which must be received within three months of the cover start date.

In the unlikely event that the medical evidence received is materially different to that given at application, LV= will inform the adviser that the terms of the policy will be reviewed, but importantly cover will remain on gender specific rates. To provide as much certainty as possible for advisers, policies will not be adjusted for small differences in medical disclosure.

LV= won’t apply the ‘G Day Guarantee’ to female income protection business, as premiums are set to decrease under gender neutral pricing, or where an adviser instructs LV= not to do so.

Mark Jones, LV= Head of Protection said: “Announcing how we will deal with our pipeline business means advisers can plan with confidence ahead of the gender directive. They can now be certain of securing gender specific rates for their clients if they want them, for applications received by LV= between now and 1 December. Given the expertise of our underwriters, we are confident fewer than 1% of policies put on-risk will need to be altered once we have received any further medical evidence retrospectively.

“We’ve listened to adviser’s requests to provide a clear, simple and common sense approach to pipeline business, and switch to gender neutral rates ahead of 21 December to avoid any last minute uncertainty. Advisers are now guaranteed not to miss the gender deadline or see clients face an enforced increase in premiums if they act now.”

Advisers do not need to request that the ‘G Day Guarantee’ is applied to protection applications received before 1 December. LV= will update the adviser on the progress of the application as normal, and automatically inform the adviser if the guarantee needs to be activated.

LV= recently launched a website dedicated to helping protection advisers ahead of the gender directive and I minus E tax changes.

For further details on LV=’s range of flexible protection and retirement products go to

  1. LV= will switch to gender neutral pricing from 1 December 2012, for all quotes requested and applications received by LV= for:
    * Flexible Protection Plan income protection, critical illness and life cover
    * LifeTime+ (underwritten whole of life)
    * Family Income Assurance
    * Gift Inter Vivos
    * Mortgage & Lifestyle Protection.

  2. For applications received by LV= between 1 September 2012 and 30 November 2012 inclusive LV= will offer the guarantee for pipeline applications where medical evidence is still outstanding on 1 December, for:
    * Flexible Protection Plan - income protection, critical illness and life cover
    * LifeTime+ (underwritten whole of life)
    * Family Income Assurance
    * Gift Inter Vivos
    * Mortgage & Lifestyle Protection.

  3. LV= will not offer the guarantee:
    * for female Flexible Protection Plan – income protection and Mortgage & Lifestyle Protection business
    * without a fully completed application (with direct debit instructions) and/or completed tele-interview (where required)
    * where money laundering identity checks or financial evidence or full client authorisation to obtain medical evidence is still required
    * for applications that are declined or postponed at application stage as per normal underwriting practice
    * where the adviser has requested LV= not to do so.

For qualifying cases, LV= will underwrite the application based on the information available, calculate the premium for the cover applied for and offer terms. Provided LV= possess valid direct debit information and the client (or the adviser on their behalf) has confirmed acceptance before 21 December 2012, LV= will put the application on risk and on gender specific rates.

On receipt of the medical evidence, LV= will review the application and terms offered. In the vast majority of cases, LV= expects there will be no change to premium or terms, and will re-confirm the agreed terms to the client and adviser. In the rare event that medical evidence reveals a significant difference to the risk, LV= will review terms (which will remain on a gender specific basis) and advise the client and adviser accordingly.

For cases where the guarantee is activated and on risk, LV= will continue to seek the required medical evidence, which must be received within three months of the on risk date. If medical evidence is not received by that point, LV= will notify the client and adviser and will cancel the policy.

LV= will cap the amount of cover under the G Day Guarantee to a maximum of:

  • £500k for Flexible Protection Plan – life protection, Gift Inter Vivos, Lifetime+ and Family Income Assurance

  • £300k for Flexible Protection Plan - stand alone critical illness or combined life and critical illness

  • £50k yearly benefit for Flexible Protection Plan - income protection and Mortgage & Lifestyle Protection.