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An orchestra of protection

Our Critical Illness cover has more than one string to its bow

Life and Critical Illness

Product profile for Life and Critical Illness

Read below a summary of the relevant product information about Life and Critical Illness, in accordance with the Insurance Distribution Directive. Designed to help you make an informed decision and comparison for your client, we set out the product’s target market, distribution strategy, suitability, main features, risks, options and costs.

This information is also available in downloadable pdf format.

Waiver of Premium can be added as a separate policy. Read about our Waiver of Premium product profile.

This is only a summary of the product features. For more information please read the Policy Summary and Policy Condition.

LV= Combined Life and Critical Illness policy pays out a lump sum if your client or the person insured dies, or is diagnosed with one of the listed critical illnesses in the policy conditions (and survives for at least 14 days) during the term of the policy.

This product is aimed at clients who have dependants who would suffer financially in the event of their death or diagnosis of a specified critical illness. It’s particularly useful for people who have a financial commitment like a mortgage or loan whose financial dependants would still be liable for the debt in if they died or were diagnosed with a critical illness.

This product can be sold on an advised basis, face to face or over the phone, but can also be sold on a non-advised basis and bought directly online.

It’s important to regularly review your client's circumstances and protection needs to make sure their cover is appropriate.

  • Pays a cash lump sum on death, or one of the specified conditions, during the term
  • Covers 64 conditions including 44 full payment, 20 additional payment conditions and 15 definitions providing wider coverage than the standard ABI definitions
  • Enhanced claim benefits for 16 conditions
  • Children’s critical illness cover automatically included, at no added cost
  • Level, increasing or decreasing cover
  • Guaranteed or reviewable premiums
  • Option to add Total Permanent Disability as a critical illness
  • Waiver of premium option
  • Your client is covered for the conditions and definitions listed in the policy conditions and no others
  • We’ll only pay one claim for each additional payment condition covered under the policy. However, your client can make a claim under any of the other critical illnesses covered by this policy. If your client suffers with severe crohns disease and severe ulcerative colitis, we’ll only make one additional payment
  • We won’t pay a claim if your client dies as a result of intentionally taking their own life in the first 12 months of the policy
  • This policy is not suitable for clients who want to protect their income should they be unable to work due to accident, sickness, involuntary redundancy or unemployment
  • There is no cash in value at any time
  • To make a claim, your client must survive for at least 14 days after being diagnosed (this doesn't apply to claims for children's cover)
  • If your client stops paying their premiums, their cover may cease
  • Reviewable premiums may increase or decrease during the term of the policy. However, the premium is guaranteed not to change for at least the first 5 years of the policy
  • If your client chooses level cover, it won't keep up with inflation and could buy less in the future
  • The minimum term is 5 years and maximum term 40 years. The policy must end before the person insured reaches the age of 70
  • Clients can choose to take out a policy on a single or joint life basis
  • On a joint life basis, the policy will only pay out once, when the first person insured dies or is diagnosed with a critical illness it will then end
  • If your client is insuring someone else an insurable interest must exist at the start of the policy. A spouse or civil partner is automatically assumed to have an insurable interest
  • When a claim is paid for a full payment condition or if your client were to die, the policy would end

To apply clients must be:

  • Permanently living in the UK
  • Aged between 17 and 64 (for level and decreasing cover)
  • Aged between 17 and 59 (for inflation-linked cover)

Is suitable for:

  • Providing a lump sum payment if the insured dies or is diagnosed with a specified critical illness
  • Those whose need for cover expires before they reach age 70 as this is the maximum age at which the policy can end
  • Clients who need cover for at least 5 years, as this is the minimum term for the policy
  • People who have a financial commitment such as a mortgage or loan, and who have dependants who would be liable for this debt if they died or were diagnosed with a specified critical illness
  • Clients looking for children’s critical illness cover from birth to age 21

Level cover is suitable for:

  • Those looking to protect an interest only mortgage with a policy that pays out the same lump sum throughout the length of the policy
  • Those looking for certainty that their amount of cover is are fixed for the term of the policy

Decreasing cover is suitable for:

  • Those looking to cover the reducing amount they owe on a capital and interest repayment mortgage or other loans
  • Those looking for a lump sum that decreases in- line with the debt they owe on a mortgage or loan

Inflation- linked cover is suitable for:

  • Those looking for the amount of cover to go up each year in line with the Retail Prices Index (RPI) to keep up with inflation

Is not suitable for:

  • Those looking for cover to pay a regular benefit if they’re unable to work for a period of time due to accident or sickness
  • Those looking for business protection to cover the loss of a key person, to provide finances to purchase shares of a director or partner in the event of their death, or to cover an interest only business loan. There are other more suitable products tailored to cover these situations
  • Clients who don’t have any financial dependants. We believe this product is unlikely to be suitable

Level cover is not suitable for:

  • Covering any rising cost to keep up with inflation as the amount of cover will be worth less in the future

Decreasing cover is not suitable for:

  • Covering the debt on an interest only mortgage as the amount of cover will decrease and the mortgage debt will remain the same, so the debt could be larger than the amount of cover in place

Inflation-linked cover is not suitable for:

  • Covering a mortgage debt, as the amount of cover will increase and the mortgage debt will decrease or remain the same, so this could result in clients paying for additional cover they don’t need

Children’s Critical Illness Cover: is automatically included at no added cost for your client’s children for all of the listed critical illnesses (with the exception of Total permanent disability and Diabetes mellitus Type 1) from birth until age 21. Children’s cover only pays out on diagnosis of a critical illness; there is no survival period required for children and it will not pay out if the child dies.

Additional Payments: This product also provides cover for 20 less severe conditions. These are included at no added cost, and conditions and limits apply. If a claim is paid for an additional payment, your clients full amount of cover remains in place. For more details, refer to the Policy Terms and Conditions.

Enhanced Payments: We will pay an enhanced claim amount on diagnosis of six specified neurological conditions, if your client is under 45 years old, and on ten full payment conditions if the claim is as a direct result of an accident. These are included at no added cost, and conditions and limits apply. For more details, refer to the Policy Terms and Conditions.

Guaranteed Increase Options: Your client can increase the amount of their cover and in some cases replace their policy with a new policy without completing a full application, if certain events happen and they are eligible. If your client changes the amount of their cover using one of these options, their premium will also change to reflect this. The premium will be based on the age and smoker status at the time of change. For more details, refer to the Policy Terms and Conditions.

Member benefits: With this policy your client automatically becomes a member and is entitled to a range of benefits, at no added cost. These include voting rights, free advice helplines and discounts on selected LV= products. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. More details about LV= membership and member benefits are available at LV.com/members (this link takes you to our lv.com website).

LV= Doctor Services: All new policyholders have access to a number of medical services and advice which can be accessed via one simple app or phone call, at no added cost. These include virtual GP consultations, prescription and second opinion services, remote physiotherapy, remote psychological services and discounted health MOT's. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. For more details visit LV.com(this link takes you to our lv.com website).

Waiver of Premium: Your client can add waiver of premium when they take out their policy, or once it is in place. We set this up as a separate policy and an additional cost. For more details, refer to the Waiver of Premium Product Profile and Waiver of Premium Policy Terms and Conditions.

Total Permanent Disability: can be added, and at an additional cost, at outset as a critical illness condition. This will cover your client if as a result of sickness or accident they are left unable to do the main aspects of their normal occupation and are never expected to be able to do so again. For more details, refer to the Policy Terms and Conditions.

The policy premium also includes a fee, which is a fixed monthly amount, to cover administration and support costs.

LV= Doctor Services is provided by Square Health Limited. This service is not regulated by the Financial Conduct Authority or Prudential Regulation Authority.

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Flexible Protection Plan

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View our Flexible Protection Plan

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Business Protection

Whether you’re new or experienced, our Business Protection products, tools & calculators will support you.

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Children's cover

No one ever wants to imagine their child becoming critically ill. But sadly, it does happen

More about our children's cover

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Large Case Team

If your client's Life Protection benefit is £1m or more, we can offer dedicated support.

More about our Large Case Team

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK