Protection specialist LV= is reintroducing day one and week one waiting periods for self-employed customers applying for LV= Personal Sick Pay (PSP).
LV= were the first to remove restrictions for traditional workers in 2020 and this development will return LV= PSP waiting periods to pre-Covid levels. Restrictions on short waiting periods were adopted by many protection providers in response to the coronavirus pandemic.
The LV= Wealth and Wellbeing Monitor* – a quarterly survey of 4,000+ UK adults - revealed that self-employed workers are struggling financially or have seen their finances worsen over time:
LV= Personal Sick Pay is a form of income protection designed specifically for the self-employed and those in riskier or more manual occupations who are harder to insure. It includes a benefit guarantee to protect those who experience a drop in income after taking out the policy. Customers can have up to £1,000 a month cover for the first two years of any claim.**
A temporary Covid exclusion for symptoms lasting under four weeks will remain for PSP applicants, meaning that a claim won’t be paid during that time if it is due to symptoms of coronavirus, respiratory tract infection, cold or flu. If the symptoms are more serious and last beyond four weeks, the claim will be considered and can be backdated to reflect this.
“LV= is among the first to remove the waiting period restrictions for self-employed customers seeking specialist cover. The pandemic has made people re-evaluate their health and finances, particularly as support through the furlough and self-employed grant schemes have ended.
“The self-employed – especially those in building trade and driving profession – are very much on their own in the event of an income shock. They don’t qualify for Statutory Sick Pay, so having an immediate income replacement safety net can provide a financial cushion against the sharp impacts of illness or injury
“The return to pre-Covid waiting periods for all, reflects our pragmatic approach as we continue to adapt, respond and do the right thing for our customers. Protection is the bedrock of financial resilience, which has become paramount in light of the pandemic and its effect on the economy.”
* The LV= Wealth and Wellbeing Monitor is a quarterly survey of 4,000+ consumers which examines their attitudes to spending, saving and retirement. LV= surveyed 4,000+ nationally representative UK adults via an online omnibus conducted by Opinium in September 2021.
** To qualify for the benefit guarantee, customers must be able to prove that they normally work at least 30 hours a week and receive an income. Evidence such as tax returns and payslips can be used to confirm their pay and the hours worked. Those requiring more than £1,000 a month cover, or working less than 30 hours a week, can protect up to 60% of their earnings before tax. Cover should not usually be put in place to cover more than 60% of a customer’s income.
LV= is a leading retirement and protection specialist. 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.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.