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Income Protection Insurance

Peace of mind if you're unable to work because of an accident or ill-health

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Call us on:0800 072 1257

Why Choose LV=

Here's just some of the great reasons to choose our Income Protection Insurance

the finer details

So, what's covered with our Income Protection Plan?

Living room with crutches
  • We'll pay an on-going regular income if you can't do your job because of an accident or sickness.
  • Rehab support services to help you return to full health as soon as possible.
  • Own Occupation - this means the policy will pay out, after the waiting period, if because of sickness or an accident you are unable to do your usual occupation. 
  • Fracture cover is included at no extra cost (a lump sum payment up to £2,200, depending on the type of bone fracture).
  • A death benefit of up to £10,000. (We'll pay £5,000 if you die within four years of the policy start date, or £10,000 if you die four or more years after the policy starts).
  • Premiums can be waived during involuntary unemployment for up to 6 months.
  • Parent and child cover -  we'll pay a lump sum if your child is diagnosed with specific illnesses, operation or medical procedure.*
  • £1,500 benefit guarantee - we understand your income can fluctuate, especially if you're self-employed or rely heavily on commission and bonuses. And if your salary does drop, there's a risk your salary will no longer support the level of cover you originally took out. At LV=, we don't like the idea of you not getting what you paid for, which is why our Income Protection automatically includes a £1,500 benefit guarantee.
  • Back to work support and career break options.
  • Teachers Sick Pay Guarantee.
  • Specific features for Doctors and Surgeons.
  • Access to member benefits.

*Exclusions apply. For more details on this and the 54 conditions covered, please see our Income Protection Policy Conditions. 

Cover types

Every person and every situation is unique, so we offer a variety of cover types

Level Cover

Level cover means that the amount of cover you choose is fixed when your policy starts and won't change. This means it won't keep up with inflation and will buy you less in the future.

How much cover can I have?

  • The most cover you can have is 60% of your annual earned income before tax. This does not include any income from savings or investments.
  • The minimum amount of cover you can apply for is £100 a month. The maximum amount of cover you can apply for is £20,833 level cover or £14,583 inflation-linked cover.
  • If you own a limited company then your income* can also include dividend income from your business as long as:
  • the dividend income is clearly related to your work activities.
  • the frequency of dividend payments must be of an established pattern, rather than irregular one-off payments.
  • the dividends are paid from annual profits net of tax. If the dividends are higher than the profit figure, we will use the net profit figure instead.

* Your income can also include dividends paid to your spouse or civil partner as long as they are also a shareholder, and they don't take over the running of the business. Any dividends paid to your spouse or civil partner must be appropriate for their level of shareholding, and must have been declared for tax purposes. However if your spouse or civil partner has used the same dividend income for their own income protection cover, it can't also be included in your income.

 

Inflation Linked

The amount you are covered for will increase in line with inflation. The premium you pay will go up each year in line with inflation multiplied by 1.5. We measure inflation using the Retail Prices Index.

How much cover can I have?

  • The most cover you can have is 60% of your annual earned income before tax. This does not include any income from savings or investments.
  • The minimum amount of cover you can apply for is £100 a month. The maximum amount of cover you can apply for is £20,833 level cover or £14,583 inflation-linked cover. 
  • If you own a limited company then your income* can also include dividend income from your business as long as:
    • the dividend income is clearly related to your work activities.
    • the frequency of dividend payments must be of an established pattern, rather than irregular one-off payments.
    • the dividends are paid from annual profits net of tax. If the dividends are higher than the profit figure, we will use the net profit figure instead.

* Your income can also include dividends paid to your spouse or civil partner as long as they are also a shareholder, and they don't take over the running of the business. Any dividends paid to your spouse or civil partner must be appropriate for their level of shareholding, and must have been declared for tax purposes. However if your spouse or civil partner has used the same dividend income for their own income protection cover, it can't also be included in your income.

 

Guaranteed premiums

Your premium is guaranteed. This means it will not change, unless you have chosen inflation-linked cover.

If you have chosen inflation-linked cover, your amount of cover will increase by inflation each year and your premium will increase by inflation multiplied by 1.5.

Reviewable premiums

Reviewable premiums do not change within the first 5 years of your policy, but after that they could change every year, but we'll let you know before we make any changes.

Budget cover

This can be a more affordable option. The claim payment period is limited to 12 or 24 months (depending on the option chosen) but multiple claims can still be made.

Please be aware that Budget Income Protection with a 12 month payment period is only available with guaranteed premiums. 

Waiting Periods

This is how long you could wait before your income protection policy starts paying out; the longer the waiting period, the more affordable the monthly premium can be.

The waiting periods you can choose are 1, 2, 3, 6, or 12 months. You can base the waiting period on your level of savings or how much employer sick pay you are entitled to. 

Please note the 1 and 2 month options are not available for a small number of occupations. 

Comprehensive cover

This will cover you if you are unable to work because of accident and sickness for your chosen term, or you retire or you are well enough to go back to work.

Income Protection for renters

Looking for flexibility in cover when your rental arrangements change?

Our Income Protection Insurance can be used to protect your monthly rent and living expenses if you can't work because of a long term illness or accident. This gives you the reassurance that you’ll be able to continue to make these payments if you were unable to work. 

But that's not all. We know that if you're renting then your situation can change suddenly and without warning.  So we've included options to help you change your cover, without you needing to give us more health or medical information. This could be helpful if your rent changes or you decide to buy your home. We talk about this more in our guide.

There are some limits for these options, such as maximum increase amounts and maximum ages. You can find out more about these limits in our Policy Conditions.

 

Income Protection for self employed

Want to know what happens if your income fluctuates?

When working out your annual earned income, we’ll take into account the last 12 months income when working out the maximum benefit we can pay you. 

However, we understand income can fluctuate, especially when you’re self-employed and as a result, there will be circumstances where we may consider averaging your income over a longer period of up to 36 months. This will need to be asked by you at the point of claim.

We'll check this when you claim and then take off other payments you may be getting, such as the payments from any other Income Protection Insurance, or accident and sickness policies that you may have. This is the maximum monthly claim amount we can pay you, although this is capped by the amount of cover you've chosen with your policy.

We talk about this in a bit more detail in our Policy Conditions.

 

are you eligible? 

Is Income Protection Insurance right for you? 

We ask that you are a permanent resident of the UK and have been registered with a UK GP for at least the last 2 years.

You must be aged between 17 and 59 and able to afford a minimum premium of £5 a month.

Consider how much cover you need and the length of time you need the cover for (your policy must last for at least 5 years).

When your policy starts, you'll need to be employed, self-employed, or a homemaker. If you're retired or unemployed (this includes claiming Jobseekers Allowance) we won't be able to offer you cover.

 

Important information

Here’s the need to know info, so you have the full picture.

Office desk with piggy bank
  • If you inaccurately state your income we may reduce what we can pay you at claim stage (we cover up to 60% of your income).
  • If you've been unemployed for 31 days or more when you claim, we'll only pay out if you can't prepare a meal or do basic housework.
  • Reviewable premiums do not change within the first 5 years of your policy, but after that they could change every year, but we'll let you know before we make any changes.
  • If you stop paying premiums you won't get any money back and you'll no longer be covered.
  • We'll only pay your claim if you've been unable to work throughout the whole your chosen waiting period. You need to wait for the full length of your waiting period before your claim will start to be paid to you.
  • The death benefit proceeds may form part of your estate which could be subject to inheritance tax.
  • If you choose level cover please bear in mind that the amount you're covered for won't go up in the future, so you'll be able to buy less with it in the future, compared to today.
  • We'll only pay for one fracture diagnosed within a 12 month period and certain fractures aren't covered.
  • Both the fracture cover and death benefit payments are fixed and won't increase with inflation.

Member Compensation Eligibility

If the proposed transaction with Bain Capital goes ahead in full, members with an active policy will get a member compensation payment. To qualify for this payment new applications for member-qualifying products need to have been submitted before 11.59pm on Sunday 28 February 2021. Member qualifying policies also need to be in place when and if the transaction is fully completed.

Financial Advice

Need advice?

We've chosen to partner with LifeSearch to offer you independent advice on which protection products are right for you.

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