In 2015, protection specialist LV= paid out 96% of all new individual protection claims, totalling £56 million over the year. This means that - on average - LV= paid more than £1 million per week and in doing so helped nearly 5,000 families.
Overall, LV= paid 100% of 50 Plus claims and unemployment claims, 99% of terminal illness claims, 97% of death claims, 92% of income protection claims, and 91% of critical illness claims.
LV= continually reviews the claims service and support it provides to customers and their families. It has invested more in rehabilitation staff, underlining the insurer’s commitment to helping customers return to work, or to create opportunities for a new career.
The company has also been investing in technology to help simplify and speed up the claims process. LV= now settles more than 70% of 50 Plus claims over the phone, without the customer needing to send a completed claim form in the post, and most dependants receive pay outs within just three days. It is extending the same philosophy across other protection products and will soon be using digital and smartphone technology to allow customers to provide medical evidence and exchange scanned documents and images.
Myles Rix, Managing Director of Protection at LV= said: “Protection policies offer a financial safety net to households at an extremely difficult time but we know that some consumers worry that claiming will be a hard process. We are releasing these numbers to make it clear that in the overwhelming majority of cases we pay out, and so advisers can use this information to demonstrate the real benefits of these products to their clients.
“As a mutual we are different from other companies, as we don’t have shareholders and are here to serve our members – this allows us to really be there for them, particularly in their time of need. For example, all LV= protection policyholders automatically quality for LV= member benefits, including access to the LV= Health and Wellbeing Line, which offers the policy holder and their family free access to medical, counselling and legal experts throughout the whole term of the policy.”
Overall, LV= paid 100% of 50 Plus claims and unemployment claims, 99% of terminal illness claims, 97% of death claims, 92% of income protection claims, and 91% of critical illness claims.
LV= continually reviews the claims service and support it provides to customers and their families. It has invested more in rehabilitation staff, underlining the insurer’s commitment to helping customers return to work, or to create opportunities for a new career.
The company has also been investing in technology to help simplify and speed up the claims process. LV= now settles more than 70% of 50 Plus claims over the phone, without the customer needing to send a completed claim form in the post, and most dependants receive pay outs within just three days. It is extending the same philosophy across other protection products and will soon be using digital and smartphone technology to allow customers to provide medical evidence and exchange scanned documents and images.
Myles Rix, Managing Director of Protection at LV= said: “Protection policies offer a financial safety net to households at an extremely difficult time but we know that some consumers worry that claiming will be a hard process. We are releasing these numbers to make it clear that in the overwhelming majority of cases we pay out, and so advisers can use this information to demonstrate the real benefits of these products to their clients.
“As a mutual we are different from other companies, as we don’t have shareholders and are here to serve our members – this allows us to really be there for them, particularly in their time of need. For example, all LV= protection policyholders automatically quality for LV= member benefits, including access to the LV= Health and Wellbeing Line, which offers the policy holder and their family free access to medical, counselling and legal experts throughout the whole term of the policy.”
Notes to Editors
Figures relate to all underwritten protection claims and non-underwritten protection claims (over 50s plans).
Breakdown of figures:
Income protection:
- The highest number of claims were for cancer (21%), musculoskeletal disorders (18%), mental health issues (18%), accidents e.g. road traffic accidents (16%), and viruses or infections (6%).
- The business paid out £1 million paid on average each month with the average pay out over £16,000 a year.
- The average age of a claimant was 48 for men and 44 for women, and the youngest customer to claim was 18.
Critical illness:
- Cancer (59%), heart attack or heart related conditions (16%), stroke (5%), multiple sclerosis (4%) and total permanent disability (4%) were the most common reasons for a claim.
- The business paid out more than £14 million, with the highest pay out around £619,000, and the average payment over £62,000.
- The average age of a critical illness claimant was 52 for men and 46 for women.
Other:
- LV= paid out almost £24 million in death claims in 2015 alone, with the highest payment £600,000.
- The highest terminal illness payment was £500,000.
More information available here: https://www.lvadviser.com/supporting-you/claims
About LV=
LV= employs over 6,000 people and serves over 5.8 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 are currently the UK’s number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.
We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations including ASDA and Nationwide Building Society.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.