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If the worst happens, make sure your clients and their loved ones are protected

Life Protection

Product profile for Waiver of Premium

Read below a summary of the relevant product information about LV= FPP Waiver of Premium, 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.

The waiver of premium product profile is also available in downloadable pdf format.

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

Target market

Waiver of Premium forms part of the Flexible Protection Plan and is designed to pay the premiums for all policies (with the exception of Relevant Life Cover) under their plan, if the person insured is unable to work due to accident or sickness for longer than the waiting period.

The waiting period for this product is set at six months, unless it includes Income Protection or Personal Sick Pay, where the waiting period will match the one chosen for that product.

Flexible Protection Plan is suitable for a client who suffers a financial loss in the event of ill health, accident or sickness or has financial dependents who would suffer financially in the event of their death. The target market varies for each of the products within the Flexible Protection Plan, so it is recommended to refer to the specific products for further information.

This product cannot be set up as a standalone policy.

Distribution

To ensure your client receives the right level of protection, we believe this product should be sold on an advised basis, face to face or over the phone.

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

Main features

  • Pays FPP plan premiums on policyholder’s behalf if they’re unable to work due to sickness or accident
  • Based on own ‘occupation cover’, or ‘homemaker cover’ definition
  • Once the person insured reaches 70, regardless of how they were being measured, the basis changes to work tasks measures. This means they are totally unable to carry out 3 or more tasks from a list of everyday activities.
  • Standard waiting period of 6 months. Except where Waiver of Premium is attached to an LV= FPP Income Protection or Personal Sick Pay policy. In which case, the Waiver of Premium policy will adopt the waiting period the client has chosen for IP/PSP.

What is not covered

  • The product does not pay out an actual cash amount, instead the client’s FPP premiums are waived

Risks

  • There is no cash in value at any time
  • If your client stops paying their premiums, their cover may cease

Limits and basis

  • The minimum term is 5 years. It will end once all of the policies included in the Flexible Protection Plan have ended, or if earlier once the person insured reaches age 85.
  • Clients can choose to take out a policy on a single or joint life basis
  • On a joint life basis, the policy will only waive the premiums for the FPP plan once, if either of the people insured are unable to work.
  • 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.
  • The cover will be the total premium your client pays for all of the policies included in the Flexible Protection Plan
  • The cover will automatically go up if any of the policies with inflation-linked cover are included in the plan
  • If any new policies are taken out or existing policies are altered, we will normally extend Waiver of Premium to cover the new plan premium

Eligibility

To apply clients must be:

  • Permanently living in the UK
  • Aged between 17 and 59
  • If they are insuring someone else, they must meet these requirements. If they are insuring two people both must meet these requirements.

Suitability

Is suitable for:

  • Those who are looking to cover their premiums in the event they are unable to work due to an accident or sickness
  • Those who have existing or are looking to take out policies within the Flexible Protection Plan
  • Those who meet the eligibility requirements for Waiver of Premium

Is not suitable for:

  • Those who do not have any LV= Flexible Protection Plan policies in place
  • Those who want to cover their premiums on Relevant Life Cover in the event of an accident or sickness
  • Those who are unemployed
  • Those looking to replace their monthly income in the event of accident or sickness

Options and additional benefits

There are no options or additional benefits.

Costs

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

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.

Literature

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Critical Illness Cover

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Large Case Team

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

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