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Life & Critical Illness

While it's easier to explain the importance of life cover, something often overlooked by clients is what would happen if they were diagnosed with a critical illness. In some cases this can mean never returning to full health and could dramatically alter your client's financial situation.

Our Life and Critical Illness policy is part of the Flexible Protection Plan, and provides your clients with wide coverage, partial payment options for less severe conditions, and larger payments for some conditions.

Cover features

  • Pays a cash lump sum on death or one of the specified conditions during the term
  • 64 conditions including 44 full payment, 20 additional payment conditions and 15 ABI+ definitions providing wider coverage (and so a greater chance a claim will be paid) than the standard ABI definitions
  • Enhanced claim payments for 16 conditions.
  • Children's critical illness cover automatically included

Options

  • Level or inflation-linked cover
  • Guaranteed and reviewable premiums
  • Term between 5 to 40 years
  • Single or joint life
  • Total Permanent Disability
  • Waiver of premium

Service features

  • Competitive non-medical underwriting limits
  • Pre-underwriting helpline
  • Dedicated large case team
  • Online tele-interview booking
Pound sign in green circle

Early payments on death claims

To support your client’s family during a bereavement, we’ll offer an optional £10,000 early payment (or pay a smaller amount if they prefer) and will aim to pay the money within 24 hours.


Additional services

  • Access to the LV= member helpline gives 24/7 access to health advice, counselling services and expert legal advice
  • LV= Doctor Services which gives gives your clients access to six medical services via one simple app or phone call

A closer look...

Life & Critical Illness Insurance provides a one-off payment if your client dies, or diagnosed with one of the 64 conditions listed within the plan before the end date of the policy. This is a first event policy, so in a joint cover case it will pay out in the first event.

The money can be used for anything they wish and will be paid to the suriving partner, or the trustees if placed into trust.

We believe that providing cover should your client be diagnosed with a serious illness is a vital part of your client’s financial planning, and so we’ve designed our proposition to provide all-round, fully comprehensive cover for all of your clients. We understand how important your role is in demonstrating the value of financial protection and we hope that this gives you the most important information you need all in one place.

Please remember that this is our current list of conditions. For clients with existing plans, please check their policy conditions.

The Association of British Insurers (ABI) has set out the standard medical definitions for 21 main critical illness conditions, as well as the total permanent disability option.

There are 15 definitions where the condition is eligible for greater cover than standard ABI definitions; these are referred to as ABI+. This means that we could pay more claims or we’ll pay them quicker, such as by removing a specified waiting period. This brings our total conditions covered to 64; 44 full payment of which 15 are ABI+ as well as 20 additional payments.

  • Alzheimer’s disease or other forms of dementia – resulting in permanent symptoms
    The ABI definition excludes other forms of dementia, and sets an upper age limit. Our definition has no limit on the age and we also cover other forms of dementia, such as pre-senile and senile

This definition qualifies for an enhanced payment. Your client will receive 150% of their original cover (up to a maximum of £200,000 on top of their original cover) if they’re diagnosed before the age of 45.

  • Aorta graft surgery – for disease or traumatic injury
    The ABI definition for Aorta Graft Surgery excludes surgery following a traumatic aorta injury. Our definition includes surgery for traumatic injury as well as disease.
  • Benign brain tumour – resulting in permanent symptoms or specified treatment
    The ABI definition requires permanent symptoms and persisting clinical symptoms. Our definition also covers surgery, radiosurgery and chemotherapy.
  • Cancer – excluding less advanced cases
    The ABI definition excludes all skin cancers except malignant melanoma and early stage chronic lymphocytic leukaemia. We're providing additional cover and a full payment for two of the most common skin cancers; malignant basal cell carcinoma and malignant squamous cell carcinoma skin cancers. We also pay claims for less advanced chronic lymphocytic leukaemia, the most common form of adult leukaemia.
  • Coma – with associated permanent symptoms
    The ABI definition requires 96 hours of a continuous comatose state and excludes claims relating to alcohol or drug abuse. We’ve removed the requirement for 96 hours on a life-support machine and do not exclude claims relating to alcohol or drug abuse.

This definition qualifies for an enhanced payment. Your client will receive 150% of their original cover (up to a maximum of £200,000 on top of their original cover) if they’re diagnosed before the age of 45.

  • Coronary artery bypass grafts (CABG)
    The ABI definition requires surgery to divide the breastbone. Our definition covers your client if the surgery is completed by any type of surgery, including keyhole surgery.
  • Deafness – permanent and irreversible
    The ABI definition requires requires hearing loss of greater than 95 decibels. We only require hearing loss of greater than 90 decibels.

This definition qualifies for an enhanced payment at claim. Your client will receive double their cover (up to a maximum of £200,000 on top of their original cover) if their claim is as a result of an accident.

  • Heart attack – of specified severity
    The ABI definition requires a minimum rise in Troponin and enzyme levels and typical clinical symptoms. We do not require any 'typical clinical symptoms' and we'll pay a full payment claim on a clinical diagnosis of a heart attack with no minimum rise in Troponin or cardiac enzyme levels.
  • Heart valve replacement or repair
    The ABI definition requires surgery to divide the breastbone. Our definition pays a claim if the heart valve replacement or repair is completed through any type of surgery, including keyhole surgery.
  • Major organ transplant - from another donor
    The ABI standard definition requires a transplant of a complete organ. We cover transplant of a full organ this as well as a whole lobe of the lung or liver.
  • Motor neurone disease and specified diseases of the motor neurones – resulting in permanent symptoms
    The ABI definition requires a claim to relate to a one of four specified conditions, and doesn't include spinal muscular atrophy. We cover all forms of motor neurone disease including claims for spinal muscular atrophy and Kennedy’s disease.

This definition qualifies for an enhanced payment. Your client will receive 150% of their original cover (up to a maximum of £200,000 on top of their original cover) if they’re diagnosed before the age of 45.

  • Multiple sclerosis – with persisting symptoms
    The ABI definition requires 6 months of continuous symptoms and does not allow claims for two or more attacks of impaired motor sensory function. We’ve removed the requirement for symptoms of a specified length of time, before we pay a claim or will pay a claim on confirmation (MRI scan)of two or more attacks or motor or sensory function.
  • Parkinson’s disease – resulting in permanent symptoms
    The ABI definition requires symptoms of postural instability, and excludes claims secondary to drug abuse. We cover claims without postural instability symptoms (as this is only usually present in more advanced cases). This allows us to pay more claims and often at a younger age. We’ve also removed the ABI standard exclusion for drug abuse.

This definition qualifies for an enhanced payment. Your client will receive 150% of their original cover (up to a maximum of £200,000 on top of their original cover) if they’re diagnosed before the age of 45.

  • Stroke – of specified severity
    The ABI definition requires 'permanent neurological deficit with 'persisting clinical symptoms'. Excludes claims relating to a traumatic brain injury and eye strokes. We don't require any permanent neurological deficit, as long as symptoms have persisted for at least 24 hours. We can also pay a claim if the stroke is caused as a result of a traumatic injury to the brain.
  • Third degree burns - covering 20% of the body's surface area or affecting 20% of the area of the face or head
    The ABI definition requires burns to have developed on 20% of the body’s surface, including the face. Our definition covers burns of 20% of the body’s surface area or affecting 20% of the area of the face or head.

This definition qualifies for an enhanced payment at claim. Your client will receive double their cover (up to a maximum of £200,000 on top of their original cover) if their claim is as a result of an accident.

  • Aplastic anaemia – complete
    A rare and severe form of anaemia where bone marrow doesn’t produce sufficient new cells to replenish blood cells. Complete aplastic anaemia is where there is a complete bone marrow failure.
  • Bacterial meningitis – resulting in permanent symptoms
    Meningitis is inflammation of the membranes which cover the brain and spinal cord. Bacterial meningitis is where this inflammation is caused by a bacterial infection.
  • Benign spinal cord tumour - resulting in permanent symptoms
    A benign intramedullary spinal cord tumour is a benign (non cancerous, non malignant) growth in the bone marrow of the spinal cord.
  • Blindness - permanent and irreversible
    Loss of sight which cannot be fully corrected with glasses or lenses and is permanent and irreversible.
  • Cardiac arrest
    The cessation of normal circulation of the blood due to failure of the heart to contract effectively.
  • Cardiomyopathy – of specified severity
    A disorder of the heart muscle which prevents it from working correctly.
  • Creutzfeldt-Jakob disease
    A rare, degenerative brain disease that leads to a rapid decrease of mental function and movement. One variant, called new variant CJD, is the human form of BSE (Mad cow disease).
  • Encephalitis – resulting in permanent symptoms
    An acute inflammation of the brain, usually caused by a viral infection. Symptoms can include fever, headache, weakness or seizures.
  • HIV infection – caught in a specified list of countries from a blood transfusion
    A virus that attacks the immune system, the body's natural defence system.
  • Idiopathic pulmonary arterial hypertension – of specified severity
    A rare disease which involves high blood pressure in the blood vessels of the lungs.
  • Kidney failure – requiring permanent dialysis
    Kidney failure is where the kidneys fail to filter toxins and waste products from the blood adequately.
  • Liver failure
    Liver failure is where the liver loses the ability to regenerate and repair. The liver can therefore no longer adequately carry out its functions which aid the body’s digestion and removal of waste products.
  • Loss of independent existence – unable to look after yourself ever again
    Loss of independence resulting in a permanent inability to perform at least three activities of daily living - Eating, Toileting, Dressing, Continence and Transfer and Mobility.
  • Loss of a hand or foot - permanent physical severance
    This is the permanent severance of one hand or foot.

This definition qualifies for an enhanced payment at claim. Your client will receive double their cover (up to a maximum of £200,000 on top of their original cover) if their claim is as a result of an accident.

  • Loss of speech – permanent and irreversible
    Permanent and irreversible loss of speech as a result of physical injury or disease.
  • Multiple system atrophy – resulting in permanent symptoms
    A rare, degenerative neurological disorder caused by cell loss in certain areas of the central nervous system. Its main symptoms include tremor and reduced movements similar to Parkinson’s disease but it has additional problems leading to a distinct diagnosis separate from Parkinson’s disease.
  • Neuromyelitis optica (Devic's disease) – with persisting symptoms
    This is a neurological condition also known as Devic’s disease. The disease is caused by either disease or damage to the brain, spinal cord or nerves and is similar to Multiple Sclerosis but requiring a different course of treatment.
  • Open Heart Surgery – with surgery to divide the breastbone
    Surgery where the chest is cut open through the breast bone for the purpose of correcting a structural abnormality of the heart or performing a coronary artery bypass graft (CABG).
  • Paralysis of limb – total and irreversible
    This is the permanent paralysis of any one limb.

This definition qualifies for an enhanced payment at claim. Your client will receive double their cover (up to a maximum of £200,000 on top of their original cover) if their claim is as a result of an accident.

  • Parkinson plus syndromes – resulting in permanent symptoms
    A group of neurodegenerative diseases featuring the classical features of Parkinson's disease that affect the nervous system and progressively worsen.
  • Pneumonectomy – removal of an entire lung
    Treatment most often used to treat lung cancer when less radical surgery cannot achieve satisfactory results.
  • Progressive Supranuclear Palsy – resulting in permanent symptoms
    A rare, degenerative brain disease which involves gradual deterioration or death of cells in certain areas of the brain. Its main symptoms include tremor and reduced movements similar to Parkinson’s disease but it has additional problems leading to a distinct diagnosis separate from Parkinson’s disease.
  • Pulmonary Artery Surgery – for disease only
    The pulmonary artery is the artery that provides a blood supply to the lungs. This may become damaged or diseased and therefore require surgery to repair.
  • Severe lung disease
    Lung disease is any disease or disorder that occurs in the lungs or causes the lungs not to work properly. To be classed as severe there must have been the need for continuous daily oxygen therapy for a minimum of 6 months, a vital capacity of less than 50% of normal and FEV1 being less than 40% of normal. These are tests of your ability to breathe properly.
  • Surgical removal of an eyeball
    The complete removal of either eyeball by surgical procedure.
  • Systemic Lupus Erythematosus
    The immune system attacks the body’s own cells and tissues, resulting in inflammation and tissue damage. It can affect any part of the body but most commonly affects the joints, skin, lungs, blood vessels, liver, kidneys and nervous system.
  • Terminal illness - where death is expected within 12 months
    This is a where an incurable disease or condition is expected to lead to death within 12 months.
  • Total permanent disability – of specified severity
    Totally or permanently unable to carry out tasks listed in the main policy.
  • Traumatic brain injury – resulting in permanent symptoms
    This is a head injury which is caused by trauma, for example accident or injury.

We want you to feel confident that the product you’re recommending offers cover for a wide range of illnesses and not only the most serious ones. Our policy also provides cover for those illnesses that may not be life threatening but can still have a big impact on your client's life and financial situation.

Our additional payments are not deducted from your clients total amount of cover.

  • Accident hospitalisation cover
    the lower of 25% of cover and £25,000
  • Arteriovenous Malformation (AVM) of the brain – with specified treatment
    lower of 12.5% of cover and £12,500
  • Carcinoma in-situ of the cervix uteri – requiring treatment with hysterectomy
    lower of 12.5% of cover and £12,500
  • Carcinoma in-situ of the urinary bladder
    lower of 12.5% of cover and £12,500
  • Carotid Artery Stenosis - treated by Endarterectomy or Angioplasty
    lower of 12.5% of cover and £12,500
  • Cerebral aneurysm - with surgery or radiotherapy
    lower of 12.5% of cover and £12,500)
  • Central retinal artery or vein occlusion - resulting in permanent visual loss
    lower of 12.5% of cover and £12,500
  • Coronary artery angioplasty
    lower of 25% of cover and £25,000
  • Diabetes mellitus Type 1 - requiring permanent insulin injections (excluded from children's cover)
    lower of 12.5% of cover and £12,500
  • Ductal or lobular carcinoma in-situ of the breast – with specified treatment
    lower of 25% of cover and £25,000
  • Non-severe cardiomyopathy – definite diagnosis
    lower of 25% of cover and £25,000
  • Ovarian tumour of borderline malignancy / low malignant potential - with surgical removal of an ovary
    lower of 12.5% of cover and £12,500
  • Partial loss of hearing
    of specified severity (lower of 12.5% of cover and £12,500)
  • Partial loss of sight – permanent and irreversible
    lower of 12.5% of cover and £12,500
  • Partial third degree burns - covering 10% of the body's surface area or affecting 10% of the area of the face or head
    lower of 12.5% of cover or £12,500
  • Prostate cancer
    lower of 25% of cover and £25,000
  • Removal of one or more lobe(s) of the lung – for disease or trauma
    lower of 12.5% of cover and £12,500
  • Severe Crohn’s disease* – surgically treated
    lower of 12.5% of cover and £12,500
  • Severe ulcerative colitis* – with operation to remove the entire large bowel
    with operation to remove the entire large bowel (lower of 12.5% of cover and £12,500)
  • Testicular carcinoma in-situ – requiring surgery to remove at least one testicle
    lower of 12.5% of cover and £12,500

* For Crohn’s disease and Ulcerative colitis, we’ll pay an additional payment for one of these conditions and not both. So for example, if we've paid a claim for Crohn’s disease, your client will no longer be covered for ulcerative colitis.

As well as covering 44 full payment conditions, we also offer enhanced payments on 16 of these conditions. This means we’ll pay your client either 150% or 200% of their original amount of cover, if their claim meets one of these 16 definitions listed below. No other provider offers enhanced payments in this way.

150% of your clients' cover

For six neurological conditions we cover, we’ll pay your client one and half times their cover, up to a maximum of £200,000 (on top of their original cover). This applies if they’re diagnosed under the age of 45.

  • Alzheimer’s disease or other forms of dementia – resulting in permanent symptoms
  • Motor neurone disease and specified diseases of the motor neurones – resulting in permanent symptoms
  • Multiple system atrophy – resulting in permanent symptoms
  • Parkinson’s disease – resulting in permanent symptoms
  • Parkinson plus syndromes – resulting in permanent symptoms
  • Progressive Supranuclear Palsy – resulting in permanent symptoms

200% of your clients' cover

We have ten full payment conditions where we’ll pay your client twice the amount of their cover, up to a maximum of £200,000 (on top of their original cover). This applies if the claim is as a direct result of an accident.

These features also apply to the children’s cover

  • Blindness - permanent and irreversible
  • Coma – with associated permanent symptoms
  • Deafness – permanent and irreversible
  • Loss of a hand or foot – permanent physical severance
  • Loss of independent existence – unable to look after yourself ever again
  • Loss of speech – permanent and irreversible
  • Paralysis of limb – total and irreversible
  • Surgical removal of an eyeball
  • Third degree burns - covering 20% of the body's surface area or affecting 20% of the area of the face or head
  • Traumatic brain injury – resulting in permanent symptoms

While the impact of any of the listed critical illnesses can be significant, often they affect older customers, or are progressive allowing customers to adapt their lifestyle to prepare ahead of the full impact of their condition.

This isn’t the case when the claim is as a direct result of an accident or early onset of a neurological condition. The financial impact on younger consumers can be much more significant and leaves them less time to plan financially for the future. This is why we added these two unique enhanced claim payment features:

  • Diagnosis of a specified neurological condition below age 45
  • Enhanced claim payment as a result of an accident

Diagnosis of a specified neurological condition below age 45

For six neurological conditions in our policy, we pay your client one and half times (150%) their cover, up to a maximum of £200,000 (on top of their original cover). This applies if they’re diagnosed under the age of 45.

  • Alzheimer’s disease or other forms of dementia – resulting in permanent symptoms
  • Motor neurone disease and specified diseases of the motor neurones – resulting in permanent symptoms
  • Multiple system atrophy – resulting in permanent symptoms
  • Parkinson’s disease – resulting in permanent symptoms
  • Parkinson plus syndromes – resulting in permanent symptoms
  • Progressive Supranuclear Palsy – resulting in permanent symptoms

Enhanced claim payment as a result of an accident

We have ten full payment conditions where we pay your client twice the amount of their cover, up to a maximum of £200,000 (on top of their original cover). This applies if the claim is as a direct result of an accident.

  • Blindness - permanent and irreversible
  • Coma – with associated permanent symptoms
  • Deafness – permanent and irreversible
  • Loss of hand or foot – permanent physical severance
  • Loss of independent existence – unable to look after yourself ever again
  • Loss of speech – permanent and irreversible
  • Paralysis of limb – total and irreversible
  • Surgical removal of an eyeball
  • Third degree burns - covering 20% of the body's surface area or affecting 20% of the area of the face or head
  • Traumatic brain injury – resulting in permanent symptoms

Our enhanced claim payment (as a result of an accident) also applies to our children’s cover. The child claim payment is doubled up to a maximum of £50,000, if the claim is as a direct result of an accident.


Here are some examples of how these enhanced features work.

Neurological feature

Mr Smith has taken cover of £100,000; he's diagnosed with Parkinson's disease at age 38. He'll receive a payment from us of £150,000.

Mrs Brown, also aged 38 and diagnosed with Parkinson's disease has cover of £450,000. She'll receive a payment from us of £650,000.

Double accident feature

Mr White has taken cover of £100,000 and has to have his leg amputated as a direct result of a car accident. He'll receive payment of £200,000.

Ms Jones has taken cover of £500,000 and suffers a traumatic head injury after a horse riding accident. She'll receive a payment of £700,000.

No one ever wants to imagine their child becoming critically ill or suffering a serious accident. But sadly, it does happen. Our children’s cover is added to your client’s policy automatically and at no additional cost.

If they don’t have children now, they’ll still be covered if they do have a family in the future.

Main features:

  • 62 conditions and treatments covered
  • 0 day survival period requirement
  • Enhanced claim payments*
  • Covered from birth until their 21st birthday
  • Includes congenital illnesses
  • Payment of up to £25,000 or £50,000 if as a result of an accident*
  • Access to our legal, medical and counselling support line

When a child is diagnosed with a critical illness or has an accident, the parents often have to take time off work, or even leave work, to focus on looking after them. Often this involves daily hospital visits, child care for the other children in the family, or making adaptions to the home or family car, all of this can have a huge emotional and financial impact.

With LV=, all children are covered including step children and legally adopted children. If your client makes a claim, it’s treated the same as an additional payment e.g. the main policy remains in full.

* We have ten specified conditions, where, if the claim is as a result of an accident, we’ll double the payment your client would have received for a normal child claim. This enhanced payment is up to a maximum of £50,000.

Please note children’s cover only pays out on diagnosis of a critical illness and will not pay out if the child dies.

All of our features are covered in full in our policy documentation.

Read below a summary of the relevant product information about Life and Critical Illness, 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.

This information is also available in downloadable pdf format.

Waiver of Premium can be added as a separate policy. Read about our Waiver of Premium product profile.

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

LV= Combined Life and Critical Illness policy pays out a lump sum if your client or the person insured dies, or is diagnosed with one of the listed critical illnesses in the policy conditions (and survives for at least 14 days) during the term of the policy.

This product is aimed at clients who have dependants who would suffer financially in the event of their death or diagnosis of a specified critical illness. It’s particularly useful for people who have a financial commitment like a mortgage or loan whose financial dependants would still be liable for the debt if they died or were diagnosed with a critical illness.

This product can be sold on an advised basis, face to face or over the phone, but can also be sold on a non-advised basis and bought directly online.

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

  • Pays a cash lump sum on death, or one of the specified conditions, during the term
  • Covers 64 conditions including 44 full payment, 20 additional payment conditions and 15 definitions providing wider coverage than the standard ABI definitions.
  • Enhanced claim benefits for 16 conditions.
  • Children’s critical illness cover automatically included, at no added cost.
  • Level, increasing or decreasing cover.
  • Guaranteed or reviewable premiums.
  • Option to add Total Permanent Disability as a critical illness.
  • Waiver of Premium option.
  • Your client is covered for the conditions and definitions listed in the policy conditions and no others.
  • We’ll only pay one claim for each additional payment condition covered under the policy.
  • This product also provides cover for less severe conditions, these are called additional payments. If a claim is paid for an additional payment, the client’s full amount of cover remains in place.
  • When a claim is paid for a full payment condition or if your client were to die, the policy would end.
  • We won’t pay a claim if your client dies as a result of intentionally taking their own life in the first 12 months of the policy.
  • This policy is not suitable for clients who want to protect their income should they be unable to work due to accident and sickness.
  • There is no cash in value at any time.
  • To make a claim, your client must survive for at least 14 days after being diagnosed (this doesn’t apply to claims for children’s cover).
  • If your client stops paying their premiums, their cover may cease.
  • Reviewable premiums may increase or decrease during the term of the policy. However, the premium is guaranteed not to change for at least the first 5 years of the policy.
  • If your client chooses level cover, it won’t keep up with inflation and could buy less in the future.
  • The minimum term is 5 years and maximum term 40 years. The policy must end before the person insured reaches the age of 70.
  • Clients can choose to take out a policy on a single or joint life basis.
  • On a joint life basis, the policy will only pay out once, when the first person insured dies or is diagnosed with a critical illness and will then end.
  • 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.

To apply your client must be:

  • Permanently living in the UK
  • Aged between 17 and 64 (for level and decreasing cover)
  • Aged between 17 and 59 (for inflation-linked cover)

Is suitable for:

  • Providing a lump sum payment if the insured dies or is diagnosed with a specified critical illness
  • Those whose need for cover expires before they reach age 70 as this is the maximum age at which the policy can end
  • Clients who need cover for at least 5 years, as this is the minimum term for this policy
  • People who have a financial commitment such as a mortgage or loan, and who have dependants who would be liable for this debt if they died or were diagnosed with a specified critical illness
  • Clients looking for children’s critical illness cover from birth to age 21

Level cover is suitable for:

  • Those looking to protect an interest only mortgage with a policy that pays out the same lump sum throughout the length of the policy
  • Those looking for certainty that their amount of cover is are fixed for the term of the policy

Decreasing cover is suitable for:

  • Those looking to cover the reducing amount they owe on a capital and interest repayment mortgage or other loans
  • Those looking for a lump sum that decreases in- line with the debt they owe on a mortgage or loan

Inflation- linked cover is suitable for:

  • Those looking for the amount of cover to go up each year in line with the Retail Prices Index (RPI) to keep up with inflation

Is not suitable for:

  • Those looking for cover to pay a regular benefit if they’re unable to work for a period of time due to accident or sickness
  • Those looking for business protection to cover the loss of a key person, to provide finances to purchase shares of a director or partner in the event of their death, or to cover an interest only business loan. There are other more suitable products tailored to cover these situations
  • Clients who don’t have any financial dependants. We believe this product is unlikely to be suitable

Level cover is not suitable for:

  • Covering any rising cost to keep up with inflation as the amount of cover will be worth less in the future

Decreasing cover is not suitable for:

  • Covering the debt on an interest only mortgage as the amount of cover will decrease and the mortgage debt will remain the same, so the debt could be larger than the amount of cover in place

Inflation-linked cover is not suitable for:

  • Covering a mortgage debt, as the amount of cover will increase and the mortgage debt will decrease or remain the same, so this could result in clients paying for additional cover they don’t need

Children’s Critical Illness Cover: is automatically included at no added cost for your client’s children for all of the listed critical illnesses (with the exception of Total permanent disability and Diabetes mellitus Type 1) from birth until age 21. Children’s cover only pays out on diagnosis of a critical illness; there is no survival period required for children and it will not pay out if the child dies.

Additional Payments: This product also provides cover for 20 less severe conditions. These are included at no added cost, and conditions and limits apply. If a claim is paid for an additional payment, your clients full amount of cover remains in place. For more details, refer to the Policy Terms and Conditions.

Enhanced Payments: We will pay an enhanced claim amount on diagnosis of six specified neurological conditions, if your client is under 45 years old, and on ten full payment conditions if the claim is as a direct result of an accident. These are included at no added cost, and conditions and limits apply. For more details, refer to the Policy Terms and Conditions.

Guaranteed Increase Options: Your client can increase the amount of their cover and in some cases replace their policy with a new policy without completing a full application, if certain events happen and they are eligible. If your client changes the amount of their cover using one of these options, their premium will also change to reflect this. The premium will be based on the age and smoker status at the time of change. For more details, refer to the Policy Terms and Conditions.

Member benefits: With this policy your client automatically becomes a member and is entitled to a range of benefits, at no added cost. These include voting rights, free advice helplines and discounts on selected LV= products. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. More details about LV= membership and member benefits are available at LV.com/members.

LV= Doctor Services: All new policyholders have access to a number of app-based medical services and advice, at no added cost. These include virtual GP consultations, prescription and second opinion services. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. For more details visit LV.com.

Waiver of Premium: Your client can add waiver of premium when they take out their policy, or once it is in place. We set this up as a separate policy and an additional cost. For more details, refer to the Waiver of Premium Product Profile and Waiver of Premium Policy Terms and Conditions.

Total Permanent Disability: can be added, and at an additional cost, at outset as a critical illness condition. This will cover your client if as a result of sickness or accident they are left unable to do the main aspects of their normal occupation and are never expected to be able to do so again. For more details, refer to the Policy Terms and Conditions.

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

LV= Doctor Services is provided by Square Health Limited. This service is not regulated by the Financial Conduct Authority or Prudential Regulation Authority.

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.

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.

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.

  • 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.
  • The product does not pay out an actual cash amount, instead the client’s FPP premiums are waived
  • There is no cash in value at any time
  • If your client stops paying their premiums, their cover may cease
  • 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

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.

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

There are no options or additional benefits.

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

Details

Life and Critical Illness cover

Waiver of Premium

Additional features

  • Children's critical illness cover
  • LV= Legal & Wellbeing line
  • Business Protection cover

N/A

Type of payment

Lump sum/s including our additional payment claims

Pays monthly premiums after a waiting period

Types of cover

Level/decreasing/inflation-linked

N/A

Term

Between five years and 40 years

To age 69 or the end of the plan term if earlier

Minimum age attained at entry

17

17

Maximum age attained at entry

59 years - inflation-linked cover

64 years - level/decreasing cover

59

Maximum age attained at end of policy term

69

69

Minimum premium

£5 a month

Based on the total plan premium

Premium types

Reviewable or guaranteed

N/A

Eligibility criteria

Your client must be a permanent UK resident

Your client must be a permanent UK resident

Number of Critical Illnesses covered

64

N/A

Other options

Business Protection cover

N/A

There are many reasons for Life and Critical illness insurance, but the main reason many of your clients may take a policy is to make sure the people that rely on them are taken care of. This could be making sure they have a place to live, to provide for their children/dependents or make sure financial responsibilities are met. But it can also be there to help cover the medical costs involved in treatment or even modifying the home or equipment to adjust to their new life.

How long?

The protection should be in place for as long as it's needed; any longer and the policy will be more expensive than it should be. Consider what your clients are looking protect and when these obligations will end.

For example, if they want to secure the family home then the policy should end when the mortgage is due to be repaid. If your client has children, consider having the policy run until they are grown up and no longer need financial support. Your client may also consider having the policy until retirement and beyond to make sure the financial strain on their partner is covered.

How much?

Consider how much your client's family is going to need each year to stay comfortable and consider the impact of inflation as level cover won't keep it's value over time.

Affordability of the monthly premiums may also be a factor, and the options on the plan will change the price the clients pay.

Factors that impact the cost of the premiums:

  • the clients' ages
  • the term of the cover
  • if it's decreasing (cheapest), level or inflation-linked (the most)
  • if they smoke
  • loadings because of medical/lifestyle factors and BMI
Tips to reduce the costs

Health and lifestyle

Although many historical medical factors can't be changed, there are some basic improvements your clients can make to make their premiums cheaper.

Giving up smoking is a clear saving, but it's worth bearing in mind that we consider a smoker that has smoked tobacco products (including patches or gum) in the last 12 months so it might be inconvenient to stop smoking in time to take life insurance! If your clients do quit smoking at a later date, you or your client can speak to our existing customer team to adjust their policy.

If your client is interested in quitting, the NHS has support plans and services to take a look at. NHS Smoke free support

However, one factor that surprises clients is the Body Mass Index (BMI). The ratings vary by age and to find out if a rating is applicable visit our Pre-underwriting tool or get in touch with our underwriting support team.

If your client is looking to improve their weight then the NHS has a BMI calculator and weight loss steps your client can follow. If they need help of support groups they could also consider subscribing to services like weight watchers or slimming world to help them through it.

Take a joint life plan

Taking joint cover is cheaper than two single life plans because it pays out on first-death. When this happens, the money should pay for whatever it should be used to cover (for example, the mortgage) so additional funds from a separate policy may be unnecessary.

Tinker with the options

Some options are more expensive than others, and having some protection in place is better than none. For example, a level plan will be cheaper than inflation-linked, with the down-side being that it won't keep the same buying power in the future. However, if it fits your client's budget, then it will be easier to get the cover in place.

Great reasons to choose LV= for Critical Illness

Strong claims performance

Strong claims performance

Making sure your client has a successful claim is as important to your client as it is to you. Your clients get vital financial help when they need it most and you feel confident in the provider you recommended.

We’re proud of our performance with 89% of critical illness claims paid and a £24.8m total claim value paid in 2018.

Better underwriting

We know advisers are not usually medical experts so we help out as much as we can. This means you can concentrate on providing the best financial advice for your client.

  • We have no standard exclusions on our income protection plans making it straightforward to explain to your client.
  • Our online application system is powered by a strong, intelligent underwriting rules engine which means that you're more likely to get an instant decision.
  • We pay for medical underwriting (except medical certificates such as sick notes).
  • We have a dedicated underwriting hotline to help you iron out any potential issues your client may have.
Value add services

LV= Doctors services

LV= Doctor Services gives your clients access to six medical services via one simple app or phone call.

  • Remote GP
  • Prescription Services
  • Second Opinion
  • Remote Physiotherapy
  • Remote Psychological Services
  • Discount health MOTs

Member benefits

Every client who is covered by one of our personal or business protection and retirement products automatically becomes a member of LV=. This means they are entitled to a range of added benefits and support. These include free and unlimited access to our 24/7 confidential member helpline and discounts on a number of LV= insurance products.

Our LV= member helpline gives you 24/7 access to health advice, counselling services and expert legal advice.

Suitability wording
 

We’ve produced a range of template paragraphs that are designed to describe generic features of each type of policy, as well as the specific benefits of our own products. You can use and adapt these paragraphs to help construct your own Suitability Letters.

A good suitability letter is:

  • your opportunity to justify and reinforce the reasons for your advice and recommendations
  • an excellent opportunity to document unmet and future needs and the importance of ongoing review discussions
  • your record of the discussions held and the recommendations made/not made and why

It should be clear, fair and not misleading. It should be personal, explain the reasons why a recommendation has been made and how it meets the customers needs and objectives. It should highlight any risks involved.

LV= has taken care to ensure the accuracy of the information at the time of issue but does not accept liability resulting from your use of it.

Risk Reality Calculator

Support your discussions with our Risk Reality Calculator

Screenshot of the Risk Reality calculator

Risk Reality Calculator

Online tool to help your clients grasp the importance of financial protection

Underwriting support

Pre-underwriting helpline

Go straight through to our underwriters who can quickly answer questions like exclusions or loading.

Email: [email protected]
Call: 0800 678 1893
8:30am to 6:30pm Monday to Friday
TextDirect: first dial 18001

Tele-interview service

Our underwriters may need more information about a particular disclosure.

Our team of friendly, fully trained UK based tele-interviewers, will call your client to gather details of their health and medical history so we can assess their application. This usually takes between 20-30 mins.

You can read our Tele-interview guide to help prepare for ain interview.

Tele-interview booking service

You or your client can book a tele-interview appointment with us directly online within 30 mins, without having to contact our new business team.

  1. It's usable as soon as you have the policy number.
  2. It shows all of the appointments available.
  3. You can book appointments as early as an hour after submission or up to seven days in advance.
Pre-underwriting tool

What is it?

Our Pre-Underwriting Tool, part of Fastway, allows you to enter illnesses and conditions (disclosures) giving instant, indicative underwriting decisions at any time.

Where to find the tool

  1. Log into Fastway
  2. Choose "New Pre-UW Enquiry" at the top of the page
  3. Refer back to the decision by accessing the record’s unique ID in your Fastway dashboard
Underwriting and financial limits

Age next birthday

PSR*

Cotinine**

GPR

ME

HIV

BIOCHEM

PROF

HbA1c

EXECG

To age 35

£450,001

£600,001

£600,001

>£1m

>£1m

>£1m

N/A

N/A

N/A

36-40

£400,001

£600,001

£600,001

>£1m

>£1m

>£1m

N/A

N/A

N/A

41-45

£350,001

£500,001

£500,001

£750,001

>£1m

£750,001

N/A

N/A

N/A

46-50

£250,001

£500,001

£350,001

£650,001

>£1m

£650,001

N/A

N/A

N/A

51-55

£150,001

£200,001

£150,001

£400,001

>£1m

N/A

£400,001 ***

£400,001

>£1m

56-60

£100,001

£200,001

£100,001

£400,001

>£1m

N/A

£400,001 ***

£400,001

>£1m

Over 60

£50,001

£200,001

£75,001

£400,001

>£2m

N/A

£400,001 ***

£400,001

>£1m

* PSR not required if ME required. ** Cotinine required on non smokers only. *** PSA included.

Make a claim

Making a claim on behalf of your client

You can contact us in the following ways to notify us that your client wishes to make a claim;

  1. phone: 0800 756 5869
  2. email: [email protected]
  3. post: LV= Health Claims Team, Emperor House, Grenadier Road, Exeter Business Park, Exeter, EX1 3LH

The information we need

For most claims, we’ll send your client a claim form. This should be completed, and include the name and contact details of your client's GP or medical specialist, as well as any supporting medical or financial evidence requested in the claim form. We may also ask for:

  • Basic details of the reason your client is unable to work.
  • Financial evidence as detailed in the claim form.

Paying the claim

  1. We’ll keep your client (and you) informed throughout the claim.
  2. We'll contact your clients GP or medical specialist directly to follow up on any outstanding requests for medical evidence.
  3. We’ll let your client know if there’s anything they can do to speed up their claim payment.
  4. We’ll normally pay the claim within 48 hours of receiving all the required evidence and making a final decision.
Claims performance

89% of Critical Illness claims were paid in 2018

Here at LV=, we offer a clear and fair approach to paying claims, as we believe anyone can be affected by long-term illness – regardless of age or lifestyle. Take a look at our full 2018 claims performance.

Protection summary 2018

Critical Illness

Total value of claims paid

£24.8m

Average annual benefit/payment

£78,334

Highest annual benefit/payment

£502,079

Policy in force duration

6 yr 8 mths

Ave. age customer at claim

Critical Illness

Male icon

Male

50

Female icon

Female

47

An icon of a man and lady

Youngest customer

25

Telephone icon

Contact us about Critical Illness

Quotes and questions: 0800 678 1890

Connect with us

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