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LV= Personal Sick Pay, tailored income protection designed for riskier occupations

Personal Sick Pay

Why LV=?

For us, protection is about being able to offer the best cover your clients’ money can buy to suit their individual circumstances. And when it comes to making a claim, we strive to make this as quick and simple as possible for you and your client. Here's what one adviser had to say about how we handled his client's Personal Sick Pay claim.


More reasons to recommend Personal Sick Pay from LV=

Personal Sick Pay £1,000 guarantee

Under our guarantee, your client can have up to £1,000 a month cover for the first two years of any claim, providing they can prove they normally work at least 30 hours a week and receive an income. When they claim, we won’t make any deductions if they receive employer sick pay or any other insurance. If the claim lasts longer than two years, we’ll continue paying the amount of cover your client applied for or 60% of their earnings before tax, whichever is lower.

It’s important to always recommend an appropriate amount of cover dependent on your client’s earnings. The amount you choose should normally be no more than 60% of their current or expected future earnings.

We’ve included the guarantee to help make sure your clients get what they paid for and to make it easier for you to explain how Personal Sick Pay works. It can also provide confidence to clients whose income could reduce between taking out the policy and making a future claim, like the self-employed.

Your client can use HMRC submissions, payslips/P60s, invoices, bank statements, employment contracts/letters from their employer or certified accounts as evidence of hours worked and income.

Guaranteed or reviewable future prices

Personal Sick Pay increases in price as clients get older, as the risk of ill health increases with age. But unlike some other specialist income protection providers, you can choose for your client’s future prices to be guaranteed or reviewable. If your client chooses guaranteed prices, they’ll know in advance how much their insurance will normally go up to each year. But if they decide on the reviewable option, we can review the future costs, but we’ll only do this every five years (we won’t review them every year like some other providers). It’s worth remembering that although reviewable prices will initially be the cheaper option, they might change in the future. For a copy of our Future Prices tables please speak to our support teams on 0800 678 1890.

Day one option

Personal Sick Pay includes the option for your client to choose ‘back to day one’ cover. If they choose this waiting period, we’ll pay them from the first day they stopped working (but they’ll need to be off work for three days in a row before they can claim). This option is a useful feature for clients like the self-employed who don't get employer sick pay, or those without an adequate financial safety net. Your client will also be able to choose from 1, 4, 8, 13, 26 or 52 week options.

Choice of waiting periods

Your client can choose from a day one waiting option, as well as 1, 4, 8, 13, 26 or 52 weeks.

Simple pricing

Your client will have the same price regardless of their occupation, whether or not they smoke and how many miles they drive for work.

How we’ll pay the claim

If your client claims they can choose for their benefit to be paid either weekly or monthly, helping them budget in the way they’re used to.

Own occupation to age 70

Your client will be covered if they can’t do their own job (providing they were working immediately before they became ill), as we think ‘own occupation’ is the fairest and easiest definition to claim on. And unlike some other specialist income protection providers, your client will keep their own occupation definition for their entire claim - not just the first year.

Own occupation on a career break or while unemployed

Your client will get our own occupation definition of sickness for the first year your client’s out of work. Most specialist income protection providers won’t pay a claim if your client was unemployed when they fell ill, which can be an occupational risk for some manual, skilled or self-employed workers. And if your client claims after a year we’ll pay a claim if they are unable to prepare a meal or do basic housework. However the maximum amount we can pay will be limited to £1,500 a month.

No standard exclusions

As you’d expect from LV=, we have no standard exclusions. It's simple and straightforward for you to explain, with no nasty surprises if your client makes a claim.

Budget option available

Budget Personal Sick Pay offers the same benefits as full cover, but we'll only pay a single claim for a maximum of 24 months. But the good news is your client’s cover will continue (we won’t cancel it if they make a claim), but they need to be back at work for at least six months in between claims.

Back to work support

We want to help your client get back to work sooner, improving their well-being and morale. So if we’re paying a claim, your client could be eligible for rehabilitation support and advice. This could include things like physio and counselling, helping prepare your client for their return to work. Please note, this may be capped to the equivalent value of one month’s benefit.

Fairer indexation

Our inflation-linked cover is priced in a way we believe is the simplest and fairest for your client. The amount of cover will go up in line with inflation (using the Retail Prices Index), and we will then re-calculate the premium to match the new amount of cover.

Proportionate benefit

If your client is claiming on their own occupation cover, and takes on a new job, but are earning less than in their previous job, we’ll continue to provide financial support.

Flexible Protection Plan

Personal Sick Pay is part of the LV= Flexible Protection Plan, allowing you to tailor protection specific to your client’s needs, circumstances and budget. We’re the only provider to include this type of income protection in our menu plan, which also includes Critical Illness cover and Life Insurance.

Is Personal Sick Pay right for my client?

Personal Sick Pay is just one of our great income protection solutions, all designed to ensure your client gets the right financial protection they need when it matters most.

Compare income protection solutions

0800 678 1890

TextDirect: first dial 18001

9am - 5.30pm Monday - Friday

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

Literature

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Flexible Protection Plan

Why not add Life cover or Critical Illness to your client's plan for a wider protection portfolio?

More on Flexible Protection Plan

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Income Protection

Protect your clients' income if they can't work due to long term accident or sickness.

More on Income Protection

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Tools and Support

Outstanding day-to-day support and online services for you and your business.

Visit our Tools and Support

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Claims hub

Visit our claims hub for customer stories, info on how to claim and our claim statistics for the year.

More about our claims hub

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