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Income Protection

Income Protection for Renters

With house prices continuing to rise, the way we live is changing. Today 1 in 5 people are renting the property they live in and for many, this is a longer-term option. However, renters still need the right cover and support in place if they're unable to work due to illness or accident, otherwise, they may find themselves unable to pay their rent or day to day bills.

  • 4.5 million households are privately renting.
  • Only 7% of renters have some form of personal protection.
  • 50% of all children born in 2018 were born into rented accommodation.
  • 30% of renters would be more likely to purchase protection if they had professional financial advice.

We want to support you and your rental clients, as well as add value to your business. That's why our award-winning Income Protection provides tailored benefits and expert support for people who rent and their families. It pays a monthly benefit if your client is unable to work due to illness or accident. This could be used to support your clients' rental payments or day-to-day living expenses to help make sure they can stay in their home.


Simplicity and flexibility for your rental clients

Simple rental guaranteed increase option (GIO)

Coin stacks in front of a house.

We understand that when your clients are renting their situation can change more regularly and sometimes suddenly. That's why we've added a rental GIO, allowing your client to amend their amount of cover easily if their rental situation changes.

If they decide to purchase a home in the future their cover moves with them (without any further medical underwriting). This makes it easier and fairer for your clients, without the worry of switching their product. The rental GIO is also available with Life and Life and Critical Illness policies. Please view the policy conditions for more information.

Flexible amendments

House with a double pointed arrow

Like you, we know that your clients can go through many life stages throughout the term of their policy. That's why with our Income Protection everything is built into one product, so whatever changes in their lives, our product will flex with them. For example, we can apply an amendment, if a specific GIO isn't suitable.

Budget options

Clipboard with coins

Rent can take a good chunk of your client's income each month and they may not have much disposable income left once their rent has been paid. Our budget options can help make their cover more affordable, with shorter claim periods of either 12-months (guaranteed premiums) or 24-months (guaranteed or reviewable premiums).

Choice of cover options

Documents behind a signpost

We recognise that your rental clients need flexible cover options, so we offer a choice of waiting periods and cover amounts. They can choose to have just enough to cover their rent or choose to cover more (providing its no more than 60% of their earnings). Your clients also have the freedom to use any payments they may receive from their Income Protection however they wish.


What does a typical renter look like?

Family units

  • 37% of renters are aged 35-54
  • 38% of renters have dependant children
  • Low financial resilience

Young professionals, families and couples

  • 35% of renters are aged 24-34
  • Rent for an average of 6 years
  • Low financial resilience
Case Study
Adam, financial adviser

Adam is a financial adviser and is 38 years old. He's a non-smoker and plans to retire at age 60.

If he were to take out £1,200 worth of cover to support him with his rental payments should he be unable to work due to illness or injury, it would only cost him around £26 a month for full cover or around £11 a month for 12-months of cover.*

*Based on level cover with guaranteed rates, waiver of premium and a 3-month waiting period. Prices correct as of December 2019.

In our video you can hear the views of Tom who rents his property. He discusses how Income Protection for Renters could provide him and his family with security.

We rent basically because at the moment we can't afford to own a home. So, we're looking to get a deposit together to own a home. The benefits of renting, I would say are you don't have responsibility for replacing that boiler or whatever it might be. The flexibility to move to different places. I think those are big things for me. I think the main worry when renting, especially as a parent of two kids, is just maybe that lack of security for your children as they grow up. Maybe not being able to pass an inheritance onto them or just not building that secure kind of future.

If I had an injury or illness and couldn't work. I think probably we'd be in a situation where it might be a case of Bank of Mum and Dad that kind of thing or just scratching together our savings to kind of deal with that so there might be some support at work but there would be, you know, a little bit of a gap and a little bit of 'Right, what do we do next. Let's work out and figure out as we go’ rather than any kind of big plan.

Yes, so I've considered income protection. I think just that security for your family if anything, big were to happen. You often think that those big things in life aren't going to happen that completely change everything. My son broke his leg a few weeks ago though and that kind of threw our life into a little bit of turmoil for for a while. So, it does open your your mind as to the things that might happen that might cause you to go right, 'I need to take this time off work’ or it might not be out of your control. So yeah, I definitely have considered it.

So, one of the features I think is really good about Income Protection is Parent and Child cover. As the parent of two kids, I think there's just always

that possibility that something might happen that just can turn your life around and absolutely change everything. So, to have that additional security that you might get extra help at a time that's going to be stressful and full of worry but definitely a feature that appeals to me. Another feature of income protection I really like is the payment holiday was really really close to being made redundant at one point in the past, and so to have that option and that security and something that kicks in at that time would be pretty fabulous.

Now I know about the legal help line, I definitely would access that with a rental contract that I had and just in terms of understanding it, what things mean, things that I'm unsure of. I think that would be really helpful service to access in the event that I get a new contract, for example.

The second opinion service is really important to me as well. Just when you've had a family member that's been diagnosed with a significant condition that really is going to affect them and your life as well, just knowing that you can go to a second opinion service to make sure that diagnosis is absolutely correct and that all avenues of treatment have been explored.

Like you, we understand that not all of your clients who rent will fit these profiles. That's why our solution is simple and flexible. It provides tailored benefits and expert support, protecting your clients who rent.


Cover to support your rental clients throughout their lives

We know that your client's children are what matter most to them. That's why we'll pay a lump sum to your client should their child be diagnosed with a specific condition. We'll pay six 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.

This provides your clients with peace of mind at a time when it's needed most, allowing them to take time off work without the worry of missing their rental payments. This is included as standard and at no extra cost, so even if your clients don't have children now, it can help to future-proof their policy.

We understand that renters are concerned about not being able to pay their rent if they lose their job. So, we offer them reassurance that they won't have to pay their premiums for up to 6 months if they become involuntarily unemployed. This means that they won't need to cancel their policy when they're under financial strain and they'll still be protected should the worse happen.

Like you, we know how passionate your clients are about their career, that's why we offer cover on an 'own occupation' basis and unlike other providers, for the full length of their claim. This pays out if, because of an accident or sickness, your client is unable to do their usual occupation.

We’ll pay a fixed lump sum if your client dies before the end of their policy. This money can provide the family with financial support at a time when the last thing they’ll want to think about is how they’ll pay the rent. 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 a 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.

Income Protection for Renters also includes fracture cover, rehab support services and cover for homemakers.


Benefits to support renters through their every day

Our Member Care Line provides valuable day-to-day support for your rental clients. It's available 24/7 and is free of charge. Perfect for your busy rental clients who may need legal advice or services to support them throughout their tenancy.

We know that renting a property isn't always straightforward, that's why we offer your rental clients access to our legal advice line. This means your clients can discuss property-related and other issues with a specialist. For example contract advice, understanding legal terms and advice on disputes.

The average 'charge-out' rate for a solicitor is around £180-£250ph, but your clients can speak to a solicitor through the Member Care Line at no cost and at a time convenient for them.

We understand that your clients will sometimes experience times of worry. Your client and their family can speak to a qualified counsellor on anything they're worried about, including relationship difficulties, emotional problems, bereavement, family problems and stress or anxiety. The team can also suggest support groups and organisations in their area which could help further. Counselling can be expensive and NHS waiting lists long, that's why we want your clients to have access to a counsellor free of charge whenever they need.

At LV= we know that life isn't always easy and it can throw the unexpected at you. So, if your client experiences a particularly challenging time they can apply for financial assistance. For example, there could be an exceptional circumstance resulting in your client not being able to work, should this not be covered by the Income Protection, your client could apply for financial support to help them meet their rental payments.

Your clients will also have access to lifestyle support services and health advice through the Member Care Line.

Including LV= Doctor Services

Stethoscope

Your rental clients will also get access to LV= Doctor Services. This offers convenient, fast and flexible medical support for your busy clients, helping to support your recommendations. It includes six expert medical services:

  • Remote GP
  • Prescription Services
  • Mental Health Support
  • Second Opinion
  • Physiotherapy
  • Discounted health MOTs

Find out more about LV= Doctor Services

Key Documents

Views of a renter

Hear the views of Tom who rents his property. He discusses how Income Protection for Renters could provide him and his family with security.

Watch Tom's video

Risk Reality Calculator

Highlight to your clients why financial protection is important using our Risk Reality Calculator. This helps them consider how they'd afford to pay their rent should they be unable to work due to illness or accident.

Launch the calculator

Contact

0800 678 1890

TextDirect: first dial 18001

8.30am - 6.30pm Monday - Friday

We will record and/or monitor calls for training and audit purposes


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Fastway

Making it easier for you to put your clients on risk quicker. This tool is especially useful when you consider how quickly the rental process moves

Log in to Fastway

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Pre Underwriting tool

Provides instant and indicative underwriting decisions, helping you to manage your clients expectations easily and quickly, right around the clock.

Launch the Pre-Underwriting tool

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Flexible Protection Plan

The rental option is also available with Life and Life and Critical Illness policies. So why not add these to your client's plan for a wider protection portfolio.

More about Flexible Protection Plan

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Tools and Calculators

We know recommending income protection isn’t always easy, so we have a range of tools and calculators to support your conversations with your rental clients.

Income Protection tools and support

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