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Income Protection features

At LV= we believe everyone should be supported if they're ill and unable to work, with quality financial protection that pays out when it matters. The cover pays an on-going, regular benefit for up to 60% of your client's income, helping minimise the cost and impact ill-health can have on clients and their families.

Our Income Protection cover includes several special features at no extra cost. Here are a few that we think set us apart from other providers:

Parent and child cover

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This is unique to the Income Protection market and provides parents with peace of mind at a time when it's needed most. We'll pay a lump sum to your client should their child be diagnosed with a specific illness, or undergoes a specific operation*. We'll pay your clients 6 times their monthly cover, up to a maximum of £25,000. This covers 54 conditions in total, and we'll pay out once for each child per policy.

*Exclusions apply. For more details on this, and the 54 conditions and medical procedures covered, please see the Income Protection policy conditions.


Teachers sick pay guarantee

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Some clients working in the public sector don’t always have straightforward sick pay arrangements. They might get paid 100% of their salary for a defined number of months, followed by 50% of salary. Sick pay entitlement can also change with each year of service, making it difficult to choose the right waiting period.

This guarantee only applies if your client is a teacher and their sick pay is the same as that which is set out in one of the following when they become unable to work:

  • The Conditions of Service for School Teachers in England and Wales (sometimes referred to as the ‘Burgundy Book’)
  • The Department of Education, Teachers Terms and Conditions for Northern Ireland
  • The Scottish Negotiating Committee for Teachers (SNCT) handbook of Conditions of Service for School
    Teachers in Scotland.

More about teachers sick pay guarantees

We also offer sick pay guarantees for Doctors, Surgeons and Dentists.


Fracture cover

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Fracture cover is automatically included with our Income Protection policy, unlike some other products in the market.

We’ll pay a lump sum (of up to £2,200) if your client is diagnosed with a specific bone fracture. There’s no waiting period and clients can spend the money on whatever’s important to them.

They don’t need to claim on their main Income Protection cover to receive this benefit, and this is paid in addition to any claim made. We’ll only pay for one fracture diagnosed within a 12 month period, not all fractures are covered and certain exclusions apply. Read more about our fracture cover.


Payment holiday

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If your client’s made involuntarily unemployed we won’t expect them to pay their premiums for up to six months and their cover will continue.

Our ‘payment holiday’ has an initial exclusion period of 90 days after the cover starts, and is limited to six months in total during the policy term – which can be taken as multiple claims.

If your client takes out Income Protection alongside any of our other menu plan policies, their payment holiday will cover their full Flexible Protection Plan premiums.


Death benefit

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We’ll pay a fixed lump sum if your client dies before the end of their Income Protection policy. Unlike some other products in the market, our death benefit is part of our contract (it’s not ‘discretionary’ or an ‘optional extra’), making it easier for you to explain how our cover works. The amount we’ll pay depends on when your client took out their policy:

  • We’ll pay £5,000 if your client dies within four years of the policy start date, or
  • £10,000 if your client dies four or more years after the policy start date*.

The lump sum will be paid to the policyholder and will form part of their estate for tax purposes. It is not a separate policy and cannot be assigned or placed in trust. This means the money may be subject to inheritance tax under current legislation, depending on their personal circumstances.

*If your client has multiple Income Protection policies with us, we’ll only pay a maximum of £10,000, irrespective of how many policies they have with us.


£1500 benefit guarantee

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We understand your client’s income can fluctuate, especially if they’re self-employed or rely heavily on commission and bonuses. If their salary does drop, there’s a risk their salary will no longer support the level of cover you originally recommended to them.

At LV=, we don’t like the idea of your clients not getting what they pay for, which is why our Income Protection automatically includes a £1,500 benefit guarantee

To make a claim, your client needs to be working at least 16-hours a week if self-employed or at least 25-hours a week if employed.

The aim of this guarantee is to protect your client against a genuine drop in income after they take out the policy.


Rehab support services

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Our rehab support services can support your client as soon as they become unable to work. This means we can offer support from as early as the waiting period, to aid their recovery before their symptoms get worse.

The earlier intervention can prevent your client from needing to take prolonged periods of time off work, helping to improve their wellbeing and morale. This is particularly beneficial for clients with longer waiting periods, who may require this support earlier.

Please note our rehab support services might be capped at three times the monthly benefit (per individual claim).


Our approach to exclusion review periods

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In addition to having no standard exclusions, if we do apply an exclusion to your client's policy due to their circumstances, our automated rules engine can offer cover with an 'exclusion review period' automatically*. This means we will only apply the exclusion for a limited time, after which we'll remove it upon request if your client suffers no further symptoms.

We believe this is a fairer alternative to offering cover with a reduced premium and the exclusion being in place for the full term of the policy.

* This is not available to all clients and will depend on their personal circumstances.

For a full list of features take a look at the Income Protection key features

Key Documents

Online Services

Risk Reality Calculator

Highlight to your clients why financial protection is important using industry statistics in our Risk Reality Calculator.

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Flexible Protection Plan

Why not add Life cover or Critical Illness to your client's plan for a wider protection portfolio?

More about Flexible Protection Plan

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Tools and Calculators

Everything you need to support your Income Protection recommendations.

Income Protection tools and support

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Personal Sick Pay

Income protection for clients in riskier jobs who can be more expensive to insure.

More on Personal Sick Pay

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Large Case Team

If your client wants cover for more than £5,000 a month, we can offer dedicated support.

More about our Large Case Team

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