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Claims

LV= Protection Pays

In this issue of Protection Pays we share some of our insights around our Critical Illness cover and the support we offer your client at claim stage.

Why is critical illness cover so important?

Hospital bed

Almost everyone knows or has lost somebody that has experienced a serious illness, such as cancer. Sadly the statistics show us that critical illnesses are more common than many think. 1 in 2 people in the UK are diagnosed with cancer in their lifetime(1), and every five minutes someone in the UK suffers a heart attack(2). These are among our top claimed for conditions.

We believe it’s important for your clients to have financial protection in place to cover them against this risk, and the financial impacts of becoming unable to work. Through our Life and Combined Critical Illness cover, we’ll pay a lump sum to your client if they are diagnosed with a specified illness or condition detailed in their policy conditions.

  1. Cancer Research UK
  2. British Heart Foundation

Critical Illness in numbers*

Scroll checklist
Open book with ABI+ on the pages
Stack of coins in front of a + s
Coin stack in front of a heart

*This is based on our current LV= Life and Critical illness cover. If your client has an existing policy with us please refer to the policy conditions.


Claims we've paid in 2018

Stethoscope

Cancer
accounts for
58% of all claims

null

Breast 35.6% Bowel 7.5% Skin 6.9%

Other top causes of claims:
Heart related conditions 14% Stroke 7%


Calendar

Average paid out

£78,334

Tall coin stack

Highest paid out

£502,079
Coin stack with heartsHospital bed

Total paid out

£24.8m
Desk with fern, tea and a family picture

Youngest claimant

25 years

Average age of claimant

49 years

Claims paid in 2019 so far...

(as at end of July 2019)

£13.9m

paid out as of the end of July 2019

Supporting over

198

customers and their families


Teddy bear on a hospital bed

Child's Critical Illness Cover

Nobody likes to think about a child becoming seriously ill. Sadly, it can happen and with it turn the family’s lives upside down. During such a challenging time the last thing any parent or caregiver will be thinking about is money, but it can result in financial pressures to the family affected. Child cover is included with our Combined Life and Critical Illness product at no extra cost. This provides extra support and peace of mind to your client should the worst happen, allowing them to focus on their child. Unlike some other providers we have a 0 day survival period, so your client’s children will be covered from birth until age 21.

Covers from birth to

Age 21

Total paid

£370,576

Most common condition

Cancer

Case study

In July 2017, Jane’s* son was sadly diagnosed with bone cancer. She contacted us to make us aware and start the claim process. We requested a completed claim form, and contacted the doctors directly for reports.

Since Jane and her husband both had Life and Critical Illness policies, they both received payments of £25,000 per policy, receiving a total of £50,000.

*This case study is based on a real claim paid in 2018. Please note that the name is for illustrative purposes only.

Getting a Second Opinion

After receiving a diagnosis of a serious illness, it can understandably be a time of uncertainty for your client and their loved ones. At claim we offer your client access to our Second Opinion service, provided by Square Health – no matter how long they’ve held a policy with us. This service connects your client with a consultant, where they can seek advice on the different treatment options available, or get a confirmation of a diagnosis. This service can provide your client with reassurance and support when it matters most.

Second Opinion can also support your clients outside of a claim as it is one of the services offered through LV= Doctor Services, which is available with all new protection policies (taken out from June 2017).

Claire shares her experience with the second opinion after suffering from persistent headaches and migraines that affected her day-to-day life:

I’m so pleased that I used the second opinion service because now I’ve got the right treatment in place that’s improving my quality of life, and I also had my diagnosis confirmed.

LV= Doctor Services is a non-contractual benefit and can be changed or removed at any time.


Open and honest conversations with your client

Sometimes we find that we aren’t always told about all of someone’s medical history when they are applying for protection. Often it’s because not enough care was taken when answering the questions, or believing something wasn’t relevant or serious enough to mention. Sometimes it’s simply because it’s been forgotten. Occasionally someone might deliberately leave information out to mislead an insurer because they believe their application might get turned down or cost too much or because they intend to submit a claim.

We know you want to be sure your client can rely on their protection policy to pay out when it matters most. Unfortunately non-disclosure can drastically delay the time it takes to pay a claim, or in more serious cases we may have to decline the claim altogether. That’s likely to be devastating for your client and their family at a time of great distress and financial hardship. That’s why it’s important to have an open and honest conversation with your client, and the impact non-disclosure or misrepresentation can have. Some of the most common conditions not disclosed at application can be accepted straight away and some at standard rates or with a small premium increase.

We understand having these conversations with your client can be difficult, that’s why we offer additional support at application stage through our tele-interviewing service. Our experienced tele-interviewers are able to take your client through the application and probe for more details when necessary, minimising the chance of non-disclosure.

Tool tip
Paper reams with a magnifying glass

Use our pre-underwriting tool to check an illness or condition and get an instant, indicative underwriting decision - without the need to go through the full application.

This tool can be used to support your client conversations around disclosures.

Customer story
Picture of Helen

Helen* took out a Life & Critical Illness policy in 2009 when she was in her twenties.

She told us she’d had investigations on a lump in her breast that the doctors advised wasn’t of concern so we allowed her policy on standard rates. In December 2018, she noticed another lump and went to see her GP. She was referred to a consultant and given a diagnosis of breast cancer. She contacted LV= in March 2019. We obtained reports from her doctors which mentioned a previous benign lump but as we’d already been told about it we didn’t have to contact her GP for more information. In May 2019 were able to pay her £100,000 critical illness benefit.

*This case study is based on a real claim paid in 2019. Please note that the name and image used is for illustrative purposes only

Rebecca Mills, Tele-interviewer

Profile: Meet a tele-interviewer

Rebecca Mills, a tele-interviewer at LV= shares how we can support your client’s application.

My role as a tele-interviewer consists mainly of calling customers at their booked time slot to either complete their application over the phone or discuss specific medical disclosures in more depth.

We offer a bespoke service where we complete the whole medical and lifestyle section of an application form, over the phone with customers so they don’t have to. This can be helpful in situations where the client may have complex or sensitive medical histories they don’t want to discuss with their IFA and can also take a large chunk of time away from the adviser’s role in the application process.

By having a tele-interview, it gives customers the opportunity to really discuss their own medical history so we can fully understand any disclosures. This helps our underwriters to make a better decision rather than taking black and white information from a GP report alone, for example. We’re open in the evening and weekends so we always try to find a time that works for every customer. It can also benefit the customer in situations where they may feel more comfortable discussing their medical history with someone other than their financial adviser.

Personally I have received in house medical training provided by my team and LV=. As a team we have a variety of skills and people working for us. We are always keeping on top of medical trends and new things whilst refreshing our knowledge on common and rarer conditions. Myself and others are also currently studying towards our FA1 qualification.

The tele-interview process can really make a difference when it comes to disclosure. By having a set appointment time, the customer can really take the time to have these conversations with us. We also send out a document with each email booking confirmation, letting the customer know the type of information we may be asking so they can prepare. We are trained and very experienced in asking the questions in the right way to really encourage disclosures and note them down with as much detail as possible to help the underwriting process.


To help support your protection conversation please download our client edition of the Protection Pays Newsletter October 2019.

If you’d like to receive our Protection Pays newsletter, you can subscribe here:


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LV=, County Gates, Bournemouth, BH1 2NF, UK