Coronavirus - INVESTMENTS AND LV= ISA

Covid-19 update and your investments

At this extraordinary time, our thoughts and concerns are with the ones we love and everyone’s health and wellbeing. But if you have an investment with us, in our smoothed managed fund range, you may be thinking about how it could be affected.

You will have seen and felt the significant volatility and reductions in markets around the world as concerns about the effect of Covid-19 took hold. No-one can be sure, but given the uncertainties around how the virus will spread and the impact it will have, it seems likely that we should anticipate that this market volatility will continue.

We completely understand that the current situation will naturally cause worry.

CURRENT POLICYHOLDERS

This information is especially for you if you have an investment, Bond or ISA with us.

These are the types of policies we mean:

LV= Flexible Guarantee Funds
LV= Flexible Guarantee Bond
LV= ISA

Answers to questions you might have about your investments with LV=

I applied for a new LV= product but I haven’t heard anything. What should I do?

We’re still accepting new business and processing any applications but it may be taking us slightly longer to do this. We’ll be in touch as soon as possible. If you’d like to know the progress of your new product please contact us.

I can’t contact my financial adviser as they're in self isolation. What should I do?

Most financial advisers have set up alternative contact details so try these first.

However if you have a query about your LV= policy application, please contact us and we’ll respond as soon as we can.

I’ve got a policy with LV= but can’t find the policy documents

Please contact us by email or phone and we can send out new documents to you.

I’ve just had a call from LV=. How do I know it’s genuine?

Sometimes we’ll call our customers to resolve a query. However it is right to be wary of calls that might be bogus. The best thing to do is take the caller’s name, hang up and ring back using our switchboard number which is 0800 678 1680. If the call has come from one our team here at LV= the switchboard operator will be able to transfer your call over to them.

Please bear in mind that we will never ask you to confirm your bank account details over the phone. You should never clarify or give your bank details to anyone over the phone.

How will I know how my pension / investment is performing?

It is best to speak to your financial adviser for the latest advice.

Is it possible that my pension / investment has fallen in value?

The value of your fund can go down as well as up. However, your fund is specially designed to offer some built in resilience:

Your fund is not just invested in equities; it is well-diversified across a mix of assets and asset classes, including fixed income and property.
Also, your policy values usually benefit from our 26-week averaging mechanism, known as ‘smoothing.’ This mechanism is continuing to work as it should. This means that the immediate impact of market volatility is reduced and you are cushioned from short-term market changes.
For some of our customers you may also have valuable guarantees which help protect against market movements.

It is important to remember that these funds are long term investments and are designed to deliver steady growth over a period of at least five to ten years. In these uncertain times taking the longer-term view into account remains a sensible perspective to take

What assets am I invested in?

Your fund is not just invested in equities; it is well-diversified across a mix of assets and asset classes, including fixed income and property.

See more for details of the spread of investments in the Flexible Guarantee Fund and Flexible Guarantee Bond
See more for details of the spread of investments in the LV= ISA

For more information or questions relating to the assets your fund is invested in, please speak to your financial adviser.

Should I make any changes to my pension / investment?

It is completely natural for people to worry. However it’s also important to bear in mind that spur-of-the-moment choices also carry risks. Even in these uncertain times taking the longer-term view into account remains a sensible perspective to take. If you’re concerned about how your pension or investment could be affected or if you’re thinking about making any changes, you should speak to your financial adviser before doing anything.

Can I cancel or stop any payments I am making for a pension or investment policy?

We urge you to think about any steps you take, as these are likely to have longer-term implications. If you are still worried or concerned we suggest you speak to your financial adviser first.

I’m worried about fraud and scams - do you have any advice?

Criminals never sleep and they are sadly using Covid-19 as another opportunity to benefit.

Please check out the information on fraud and scams.

I want to understand more about my policy?

Of course. You can take a look at your terms and conditions to see the features of your product. Or you can contact us and we can tell you. If necessary you can also talk to a financial adviser about what plans you could put in place for the future.

I’m struggling to make ends meet. Can you help?

There is a lot of support out there which you can read about and we have a Member Support Fund which might also be able to help.

I have a guarantee on my investment, is it still valid?

Yes, any active guarantee is valid until the date of expiry or until you choose to cancel it. Speak to your financial adviser if you'd like to find out about your guarantee.

I was given a mutual bonus in 2019, can you take this away?

If you have an LV= Flexible Guarantee Bond or a Flexible Guarantee Fund investment you will have received a mutual bonus in 2019. As the mutual bonus is at the discretion of the LV= Board we are able to recall it. However, we'd only take it away in exceptional circumstances, for example if we needed to protect our financial strength. To date, we have never had to do this. It could also be reinstated if the LV= Board believes it's appropriate.

More details about the mutual bonus

Can LV= suspend the averaging mechanism known as ‘smoothing’?

Policy values usually benefit from our 26-week averaging mechanism, known as ‘smoothing.’ This mechanism is continuing to work as it should. We can temporarily suspend smoothing in exceptional circumstances to protect our funds and in the interests of remaining policyholders generally.

The scenarios in which we would suspend our averaging are outlined in your terms and conditions and can be discussed in more detail with your financial adviser.

It is important to remember that these funds are long term investments and are designed to deliver steady growth over a period of at least five to 10 years. In these uncertain times taking the longer-term view into account remains a sensible perspective to take.

Get in touch

The first person you should contact is your financial adviser

If you haven’t got one you can find a list of professionals in the link below.

https://www.unbiased.co.uk

You should know that they do charge a fee for their services and obviously they won’t be able to come to your home until the Covid-19 lockdown is lifted.

Get in touch with us about your investments or ISA

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