information

We use cookies to make sure your experience is as good as it can be. If you’re happy with that, just continue using the site. Learn more about cookies.

skip to main content

Product profile for LV= ISA

Read below a summary of the relevant product information about our ISA, 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.

This is only a summary of the product features. For more information please read the Plan Conditions.

The LV= ISA is a stocks and shares ISA, primarily suitable to attain capital growth. The plan accepts initial and ad-hoc lump sum investments. Ad-hoc top-ups are made into your clients existing LV= ISA, into the same fund option.

The product offers a unique averaging mechanism and a capital guarantee which aims to reduce the impact of market volatility. The capital guarantee is available on our ISA Cautious Fund and is available at initial or subsequent investment or on expiry of a previous guarantee.

We offer three risk-rated funds that invest in a mixture of different assets and offer the potential for smoothed investment growth. Your client can only invest in one of these fund options at a time, per LV= ISA, across all investments within that ISA. Multiple LV= ISAs are not permitted.

In keeping with the ISA regulations, the product also provides the flexibility to allow ad-hoc withdrawals, as well as permitting transfers out. The LV= ISA has no fixed term but we would expect a client to invest for at least 5 years and ideally 10 years or more.

We believe the main group of individuals that the LV= ISA is likely to appeal to as part of their savings and investment strategy are:

  • 30 to 70 year olds with lump sums to invest.
  • Those looking for an opportunity to transfer in other ISA investments from other ISA providers.
  • Pre and post-Retirement - those looking for a less volatile investment experience or those seeking better potential investment returns than they receive from cash deposits.
  • Post-Retirement - as an investment opportunity for investing Pension Commencement Lump Sum (PCLS) up to the ISA limit to provide additional investment return where it is not immediately needed to fund retirement. This is likely to be clients who have already taken PCLS and have residual funds available.

To ensure your client receives a product that is right for them we believe the LV= ISA should be sold on an advised basis, whether this be face to face or over the phone.

  • Choice of three non-profit risk-rated investment fund options.
  • A unique averaging mechanism to reduce the impact of short term market volatility.
  • A unitised investment with the option to take ad-hoc withdrawals.
  • Optional capital guarantee at outset on the ISA Cautious Fund option.
  • This is a stock market investment so your client isn’t certain to make a profit and may get back less than they invested.
  • If your client buys a guarantee on the ISA Cautious Fund and decides to cash in, fully transfer out or switch fund option, before or after the end of the guarantee term, they will lose the benefit of the guarantee.
  • Transfers and lump sum investment.
  • Minimum investment £10,000, maximum investment via new premium is the annual ISA allowance (£20,000 for 2020/21 tax year). Maximum investment for subscriptions and transfers in is £1,000,000 across the LV= ISA, and aggregated Flexible Guarantee Bond premiums (all series)/ Flexible Guarantee Funds (all series) premiums.
  • Available for initial and ad-hoc lump sum investments. Further investments are made into the same LV= ISA, into the same fund option.
  • Each top-up made into your client’s plan will be set up as a separate policy within the LV= ISA plan.
  • Minimum top-up amount into a new guaranteed policy is £,10,000.
  • Minimum top-up amount into a new non-guaranteed policy is £2,000.
  • No fixed term, but we would expect a client to invest for at least 5 years and ideally 10 years or more.
  • The LV= ISA includes life cover of 100.1% of the value of the ISA. It is available on an own life basis only.
  • A 10 working day wait period for all fund switch requests will be applied.
  • A wait period of up to 10 working days may be applied for withdrawals, ad-hoc adviser charges and transfers out.

To apply clients must be:

  • Aged 18 and over, maximum age is 84 years attained (85 next birthday).
  • No further payments permitted into the LV= ISA from 85 years.
  • UK residents and Crown Servants or spouse / civil partner of Crown Servant serving overseas.
  • Investment into the ISA will not be permitted within 12 months of full surrender of another LV= ISA (or full surrender of the last policy if multiple policies are held).

Is suitable for individuals who:

  • wish to invest a lump sum for at least 5 years and ideally 10 years or more
  • want to choose a fund to match their risk appetite
  • understand the risks associated with stock market related investments and are willing to accept them in exchange for potential growth in their investment
  • want the option to add a guarantee to their investment at outset in exchange for an extra monthly charge
  • want to transfer existing ISA pots held with other providers into one place for easier and more efficient management
  • wish to invest some or all of their ISA allowance within a guaranteed / smoothed environment
  • want to make use of their tax efficient allowances
  • wish to make lump sum subscriptions
  • want to achieve investment growth on their savings with the option to take ad-hoc withdrawals

Is not suitable for individuals who:

  • don’t wish to invest for the long term
  • don’t understand the risks associated with stock market related investments
  • don’t wish to buy a guarantee and don’t wish to put their capital at risk
  • don’t understand that withdrawals from an investment with a guarantee will have the effect of reducing the guaranteed amount. A portion of any guarantee in place will be lost following continued withdrawals
  • don’t understand the potential impacts of large and frequent withdrawals on their investment
  • wish to make ad hoc subscriptions of less than £2,000
  • wish to make regular monthly subscriptions

Optional Capital Guarantee: Your client can buy a capital guarantee when they take out their LV= ISA, on subsequent top-ups (subject to product minimums) or when an existing guarantee ends. A guarantee can only be added at the point of application and cannot be added at a later date. If your client has a guarantee in place and they request a fund switch, the guarantee will cease on receipt of the switching request and a new guarantee will not be offered. When your client buys a guarantee, we promise that, at the end of the selected guarantee term, the guaranteed policy will be worth at least the amount it was when they bought it, less any money paid out during the guarantee term (including withdrawals, ongoing and ad-hoc adviser charges). Naturally, if the guaranteed policy is worth more than the guaranteed amount at the end of the guarantee term they get the extra as well.

The guarantee is available on the ISA Cautious Fund option only, with a term of 10 years.

There is an additional charge for the guarantee. For more information about the guarantee, please refer to the LV=ISA Supplementary Information Document.

Member benefits*: With this LV= ISA 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.

LV= Doctor Services*: All new ISA holders have access to a number of app-based medical services and advice, at no added cost. These include virtual GP consultations, prescription and second opinion services. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. For more details visit LV.com.

* LV= Doctor Services and LV= Member Benefits are provided by third party companies. These services are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

Initial charge: nil.

Monthly management charge: The monthly management charge is based on the value of the LV= ISA at the time each charge is taken. Any charges applied will be taken monthly by cancelling units.

Early Encashment Charge: nil.

Administration charges: Fund switch charge: Free of charge for the first three per LV=ISA plan year. Thereafter a fee of £25 will apply for each additional fund switch).

Performance

Flexible Guarantee Bond

Providing an important element of protection and investment security for client's.

Fund options

Flexible Transitions Account

The easy way to recommend and deliver LV= retirement income products in one place.

Membership rights

Member benefits

Taking out an ISA entitles your client to member benefits, such as discounts on other products.

Contact us

Contact us

Read more about where we're based and all of our contact information.

Connect with us

About retirement

Vimeo logoLinkedIn company logoTwitter icon showing a bluebird

FOR UK FINANCIAL ADVISERS ONLY
Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK