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LV= refreshes income protection product to extend cover

24 January 2017 | LV= News


Protection specialist, LV=, is today announcing several new improvements to its Income Protection product which will increase access for consumers and cover even more eventualities.

The changes include introducing Fracture Cover, with payments up to £2,200 [1] and a Death Benefit of £10,000 [2]. Both of these will now be automatically included as part of the contract, at no additional cost, and with no further underwriting or application forms.

LV= has also added a Premium Payment Holiday, which means customers will not need to pay their premiums for up to six months if they are made involuntarily unemployed or leave work to become a full-time carer. This helps ensure customers can keep their cover in place and will also benefit advisers who will not lose commission because of a lapsed policy.

Another addition is a Teachers Sick Pay Guarantee to offer simple, tailored income protection payments for teachers who, like many public sector employees, have sick pay arrangements that change depending on length of service.

The mutual is also increasing the maximum amount that customers can protect, so they can now cover up to a maximum of 60% of their earnings, and removing the minimum cease age.

Myles Rix, Managing Director of Protection at LV=, said: “Taking out income protection is one of the best ways for consumers to improve their resilience to financial shocks and we recognise that in these current uncertain times our customers need protection against the widest range of possibilities. We’ve listened to advisers’ and consumers’ concerns and extended our cover so it protects against more eventualities. We believe the changes we’ve made will offer wider access, greater certainty and added value, and will appeal to advisers and their clients alike.”

LV= income protection is available on LV= Fastway – the insurer’s new quote and apply system – which makes the process as easy, and quick, as possible for advisers, ensuring more clients are protected sooner.


For further information please contact:

Robyn Margetts, robyn.margetts@lv.com, 020 7634 4418 / 07342 056747

Hannah Fensome, hannah.fensome@lv.com, 0207 634 4497 / 07584 889174


Notes to editors:

[1] Amount will vary depending on type of fracture.

[2] Death Benefit of up to £10,000 will only apply once the policy has been held for 4 or more years (£5,000 in the first 4 years).


1) About LV=

LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. We are currently the UK’s number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations including ASDA and Nationwide Building Society.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Further details can be found on our website: www.lv.com

2) Summary of changes to LV= Flexible Protection Plan - Income Protection

The new IP features and benefits are available for all new applications from 24 January 2017. More details about definitions, limits and LV= approach are included in the policy terms and conditions.

  • Fracture cover - automatically included as part of the contract, and pays a fixed lump sum of up to £2,200 for specified bone fractures.
  • Death benefit – automatically included as part of the contract, where if the policyholder dies before the end of their policy, we will pay a fixed lump sum up to a maximum of £10,000.
  • Payment of premium if unemployed (payment holiday) – automatically included as part of the contract. In the event that a customer becomes involuntarily unemployed or a full-time carer, LV= won’t expect them to pay their premiums (but their cover will continue).
  • Teachers sick pay guarantee – a simple policy set up so the IP benefit works hand in hand with the teacher’s sick pay arrangements. As long as the client’s sick pay scheme matches that for a local authority teacher, and they choose a waiting period of 12 months, LV= will pay their benefits early to mirror their employer sick pay arrangements.
  • Removal of minimum cease age of 50 - enabling advisers to match the IP benefit to younger clients’ needs and a specific mortgage terms.
  • Increased maximum cover - to 60% of earnings.

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