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Income Protection

Doctors and Surgeons cover

Doctors and Surgeons aren't immune to ill health and accidents that could stop them from earning.

That's why our Income Protection includes a number of features which have been designed especially with doctors and surgeons in mind.

NHS Sick Pay Guarantee

We've made it easier for you to recommend Income Protection to your clients who are doctors and surgeons with the LV= NHS Sick Pay Guarantee.

If your client is directly employed by the NHS, simply select a 12 month waiting period for their Income Protection policy, and if they claim we'll pay out early based on how long they have been working for the NHS at the time.

Length of NHS service

LV= Sick Pay Guarantee 50% of monthly benefit after...

LV= Sick Pay Guarantee 100% of monthly benefit after...

Up to 4 months

N/A

1 months

Over 4 months and up to 1 year

1 months

3 months

Over 1 year and up to 2 years

2 months

4 months

Over 2 years and up to 3 years

4 months

8 months

Over 3 years and up to 5 years

5 months

10 months

Over 5 years

6 months

12 months

Here's an example of how the NHS Sick Pay Guarantee works:

Raj has worked as an NHS doctor for four years and is earning £60,000 per annum. His adviser picks the full 60% of pre-tax income allowed £36,000 / £3,000 per month as his income protection benefit, with a 12 month waiting period.

For the first five months he gets his sick pay from the NHS (100% of his post-tax income). Then for the next five months he gets 50% of his post-tax income (half pay from the NHS) plus 50% of his Income Protection benefit (£1500).

Although it’s more than the 60% of the income limit allowed (£1,500), we don’t make deductions for the continuing sick pay that he is receiving from the NHS. After ten months, Raj’s NHS Sick Pay stops and we’ll pay him 100% of his income protection benefit £3,000

a month.

£3,000 Benefit Guarantee

As you know, there is a risk with some protection providers that when you recommend their Income Protection, if your client’s income is lower when they make a claim (compared to when they took out the policy), their new salary may no longer support the level of cover you recommended.

This is called ‘over-insurance’, and when this happens, it can lead to your clients not receiving the level of benefit they may have paid for and had been expecting. At LV=, we don’t like the idea of your clients not getting what they paid for, which is why we’ve introduced the LV= £3,000 Benefit Guarantee. It’s available to Doctors and Surgeons who are licensed and registered to practice in the UK with the General Medical Council.

With the LV= £3,000 Benefit Guarantee, no matter what your client’s income may have dropped to when they come to make a claim as long as they are working at least 32 hours a week, we guarantee to pay them at least £3,000 a month (or if they chose cover of less than £3,000 a month, then we guarantee to pay the level of cover they chose) less any continuing income they’re still receiving (this is explained further in Appendix 1 of the Plan Conditions).

The aim of the benefit guarantee is to protect your client against a genuine drop in their income after they take out a policy. If they weren't earning enough when the policy started to support the amount of cover they chose, then we reserve the right not to apply the benefit guarantee.

Did you know...?

  • Aside from the LV= £3,000 Benefit Guarantee, we'll also accept up to 10% over-insurance without making any deductions, for the full length of any claim.
  • For your self-employed clients, we'll average their income over the previous 3 years for a realistic view of their business.
  • We were one of the first protection providers to publish our Income Protection claim stats, and we continue to do so each year.
  • For your clients who aren't Doctors or Surgeons, we provide a generous £1,500 Benefit Guarantee.

Guaranteed rates

If your client chooses guaranteed premiums, the price of their cover will stay the same - even if they later move to a riskier job. This feature could be particularly attractive to any of your clients still in training, or working as junior doctors.

Sabbatical Break Cover

Many doctors and surgeons will consider taking a Sabbatical, perhaps to study, gain experience, participate in charity work or just take a break.

With our special sabbatical feature, your client can take an extended break (up to two years) away from their role. If they claim, we'll treat them as if they were working in their normal doctor or surgeon role, and they'll keep their normal level of cover and own occupation definition of sickness.

We also don’t place any restrictions on where they can go, or the type of work/activity they do whilst they’re away.

And your client won't need to tell us they're taking a sabbatical, they just need to be able to prove:

  • the sabbatical was approved by their employer

and

  • that their job was kept open for them

There are the following limitations in Sabbatical Break Cover:

  • This sabbatical break cover won't apply if the date your client becomes unable to work is within 12 months of the start date of their policy.
  • The maximum period of sabbatical cover allowed is 2 years for each sabbatical period taken. So if your client takes a break of more than 2 years and becomes unable to work after the 2 year sabbatical break cover has ended, they'll be treated as out of work, and their claim will be assessed accordingly.
  • Premiums still need to be paid throughout the sabbatical
  • A minimum of one year between sabbatical breaks.

Significant Career Progression GIO

We understand that Doctors and Surgeons could experience a significant increase in their income as they gain qualifications and progress in their role. If your client has a significant increase in salary of 20% or more (and they let us know within three months), we will allow them to increase their annual level cover by up to £20,000 without any medical underwriting.

Due to the generous size of this GIO it can only be used once during the lifetime of the policy and as long as total cover doesn’t exceed 60% of their income before tax. However, they can still activate the other GIOs mentioned below for other life events.

Your client could increase the amount of cover by up to 50% of the original amount of cover and £10,000 a year, on the total of all GIOs made during the life of the policy.

  • An increase in their mortgage as a result of moving home (or home improvement)
  • Marriage or Civil Partnership
  • Childbirth or legal adoption of a child
  • Career progression (at least a 10% basic salary increase)

An example of how the LV= Significant Career Progression GIO would work

Sarah is a Foundation Year 1 Doctor and is earning £22,400 a year. Her independent financial adviser recommends LV= Income Protection, the maximum benefit available to her is £13,440 (£1,120 a month).

Sarah successfully completes her training and her salary increases but she doesn’t increase her cover. Five years later, Sarah is fully qualified and becomes a Consultant earning £74,500 a year.

Her adviser calculates that the maximum benefit she is now eligible for is £44,700 (£3,725 a month), so using the LV= Significant Career Progression GIO her cover is increased with no additional underwriting to £33,440 (the original £13,440 plus an additional £20,000).

If she wanted to increase her cover to the maximum benefit of £44,700, underwriting would apply to the remaining amount.

Competitive premiums for Doctors

We will always base our price on your client’s formal job title at the time of their application. So until someone is fully qualified as a surgeon (when they are registered with the Royal College of Surgeons) and that is their formal job title, they will qualify for the lower doctor’s rates.

Occupation guide

No HIV/AIDS exclusions

Doctors and Surgeons are often exposed to the risk of needlestick. And whilst the risk is small, you and your client can be reassured to know that we don't have exclusions for HIV/AIDS.

'Own Occupation' definition of incapacity

‘Own Occupation’ is the best definition available and is the easiest to claim on. Even if your client changes to a riskier occupation later in their career, they will be evaluated on their ability to do their job immediately before they became ill. We won’t increase premiums, however if they move to a safer occupation we may even reduce their premium. And if they stop working they may be able to benefit from our sabbatical break option.

Working abroad

If your client is considering working abroad, we can offer flexibility. Your client can still maintain their cover, and we won’t cancel their policy as long as there was no intention to permanently move overseas when their policy was taken out. Your client can claim whilst abroad if they have still have a UK bank account. We will only restrict a claim if it comes from outside of Europe, USA, Canada, Australia or New Zealand, where we will only pay a claim for a maximum of 26 weeks.

Your questions answered

Which professions qualify for these features?

To qualify, at claim your client needs to be a Doctor or Surgeon who is;

  • Registered (or provisionally registered) with the General Medical Council

and

  • Licensed to practice as a Doctor or Surgeon in the UK

Please remember that for the NHS Sick Pay Guarantee, your client must be employed by the NHS.

Do LV= classify a Junior Doctor training in surgery as a Surgeon?

We will always base our premiums on your client's formal job title at the time of their application. So unless someone is fully qualified as a Surgeon and that is their formal job title, they will qualify for Doctor's rates.

If you're unsure if the product is right for your client, you can speak to our adviser support team on 0800 032 4219 or email us at lv.agency@lv.com and we'll be happy to help. Our lines are open from 9am to 5pm Monday to Friday.

0800 678 1890

TextDirect: first dial 18001

8.30am - 6.30pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.

Watch our Income Protection video

Income Protection enhancements video thumbnail

Watch our short video that summarises the exciting changes we've made to our Income Protection product.


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