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Family Income Assurance

If your client were to die or become terminally ill, their family may struggle to meet all their financial commitments with no income coming in.

Our Family Income Assurance can provide your clients' peace of mind by providing a tax free income, if they were to die or be diagnosed with a terminal illness.

Because Family Income Assurance pays an income every three months, it’s often more affordable compared to other types of life insurance, which pay out a fixed one-off lump sum.

Features included as standard

  • Guaranteed Premiums
  • Pays an income every 3 months (can convert at claim to a reduced lump sum)
  • Terminal illness benefit

Options

  • Level and inflation linked cover
  • Waiver of premium

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...

Your client's premiums won't increase over time unless they've included inflation-linked cover, so your client knows what they'll be paying in the future.

The income is paid every three months, starting from the date of death or diagnosis of a terminal illness, until the end date of the plan.

You can insure two people under one plan. If you do, the plan will pay out if either of your clients die or are diagnosed with a terminal illness before the end of the plan.

This is an incurable illness, where in the opinion of an attending medical consultant and our Chief Medical Officer, and they would not be expected to live more than 12 months. Once diagnosed, we'll start paying the claim to the plan holder.

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

Detail

Family Income Assurance - Level cover

Family Income Assurance - Inflation-linked cover

Waiver of premium

Type of payout

Quarterly payments (can choose to convert payments for a reduced lump sum payment at claim stage)

Quarterly payments (can choose to convert payments for a reduced lump sum payment at claim stage)

Pays the plan monthly premiums after a waiting period

Term

Between 4 years and 45 years

Between 4 years and 45 years

Option available on all policies up to the age of 65

Minimum age attained at entry

17

17

17

Maximum age attained at entry

79

60

65

Maximum age attained at end of policy term

90

65

65

Minimum premium

£7 a month, £21 a quarter or £84 a year

£7 a month, £21 a quarter or £84 a year

Based on total plan premium

Maximum claim period

Until the end of the plan term

Until the end of the plan term

Until the end of the plan term, age 65, the client returns to work or passes away

Waiting period

N/A

N/A

26 weeks

Eligibility criteria

Your client must be a permanent UK resident

Your client must be a permanent UK resident

Your client must be a permanent UK resident

Payment frequency

Option to pay monthly (must be paid by Direct Debit), quarterly or yearly (can be paid by cheque or Direct Debit)

Option to pay monthly, quarterly or yearly (must be paid by Direct Debit),

N/A

Extras

  1. Member benefits
  2. LV= Doctor services
  1. Member benefits
  2. LV= Doctor services

N/A

If your client dies, family household bills can mount up and become hard for the surviving spouse to live without the income and keep up with the payments. This can mean they may not be able to keep their home or support their children to adulthood. As this is a form of decreasing term assurance it can be a cost effective way to protect your client's family as part of a protection portfolio.

How long?

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 payments run to retirement and beyond to make sure the financial strain on their partner is 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, so reducing the sum assured may be an option to make sure protection is in place.

When shouldn't it be taken?

Although the payments can be used for anything the family wishes, a life insurance that provides a lump sum would be better suited to repay a mortgage.

Great reasons to choose LV= for Family Income Assurance

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 95%* of Life Insurance claims were paid in 2018 and a total value £32.6m claims paid.

*These figures include claims paid for both our Life Insurance and Lifetime+ products. Our Lifetime+ product is no longer available.

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 have flexible medical examination arrangements. If your client needs a medical examination, where possible we'll make sure that they're seen by their local GP, and if appropriate, offer a suitable alternative with our nationwide healthcare networks.
  • 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.

Being an adviser isn't just about selling products. With this in mind we aim to help you as much as we can. See below for information to help support your business sales.

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.

Calculators
Screenshot of the risk reality calculator

Risk Reality Calculator

Help your clients understand the importance of protecting their income.

Product profile for Family Income Assurance

Read below a summary of the relevant product information about Family Income Assurance, 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.

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

Target market

This product is aimed at clients who have dependants who would suffer financially in the event of their death or diagnosis of a terminal Illness. It provides regular payments until the end of the policy term that are not subject to income or capital gains tax. It’s particularly useful for people who have financial commitments (such as regular loan repayments) that their dependents would still be liable for if they died.

For clients with children they may want to ensure a regular income to help look after their children after their death.

It’s primarily aimed at clients who wish to cover their own financial commitments, however clients can take out a plan on a life of another basis, providing they have an insurable interest in the person being insured.

Distribution

To ensure your clients receive 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.

Main features

On death during the policy term, the product pays an income every three months until the end of the term (can convert at claim to a reduced lump sum).

  • Terminal Illness cover is included at no extra cost
  • Level or inflation-linked cover
  • Guaranteed premiums
  • Waiver of premium option

What is not covered

  • 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
  • We won't pay a terminal illness claim in the last 12 months of the policy
  • This policy is not suitable for clients who want to cover themselves against a critical illness or protect their income should they be unable to work due to accident and sickness

Risks

  • There is no cash in value at any time
  • If your client stops paying their premiums, their cover may cease
  • If your client chooses level cover, it won't keep up with inflation and could buy less in the future

Limits and basis

  • The minimum term is 4 years and maximum term 45 years. The policy must end before the any person insured reaches the age of 90 (for level cover) or age 65 (for inflation-linked cover).
  • 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, on the first death 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.

Eligibility

To apply clients must be:

  • Permanently living in the UK
  • Aged between 17 and 79 (for level cover)
  • Aged between 17 and 60 (for inflation-linked cover)

Suitability

Is suitable for:

  • Clients that have financial dependents who would suffer a financial loss in the event of their death during a specific number of years
  • Clients that have a financial commitment such as a mortgage or loan, and whose financial dependents would still be liable if the person insured dies
  • Those whose need for cover expires before they reach age 90 (level cover) or 65 (inflation linked cover) as this is the maximum age at which the policy can end
  • Clients who need cover for at least 4 years, and no longer than 45 years as these are the minimum term and maximum term for the policy
  • Clients who want a product that pays a regular income every 3 months (can convert at claim to a reduced lump sum) if they were to die or are diagnosed with a terminal illness

Level cover is suitable for:

  • Those looking for the amount of cover payable at claim to remain the same throughout the term of the policy

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 Life and Critical Illness cover that would pay out a lump sum if the person insured dies or is diagnosed with a critical illness during the term of the policy
  • Those looking for Income Protection to protect their monthly income in the event of 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.
  • Those who are looking for their cover to decrease over the term of the policy
  • 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
  • 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

Options and additional benefits

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.

Costs

    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.

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 on either a particular area, or simply in relation to the amount of cover applied for.

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.
Underwriting and financial limits

Age next birthday

TI*

PSR**

Cotinine**

ME

HIV

GPR

PROF

EXECG

To age 35

£750,001

£900,001

£900,001

>£2m

>£1.5m

>£1m

>£2m

>£7.5m

36-40

£600,001

£900,001

£900,001

>£2m

>£1.5m

>£1m

>£2m

>£7.5m

41-45

£500,001

£800,001

£800,001

>£2m

>£1.5m

>£1m

>£2m

>£5m

46-50

£400,001

£700,001

£700,001

>£1m

>£1.5m

>£1m

>£1m

>£4m

51-55

£250,001

£550,001

£550,001

>£1m

>£1.5m

>£1m

>£1m

>£3m

56-60

£200,001

£450,001

£450,001

£750,001

>£1.5m

>£1m

>£1m***

>£2m

61-65

£100,001

£250,001

£250,001

£500,001

N/A

>£1m

>£1m***

>£1.5m

Over 65

£75,001

£150,001

£150,001

£250,001

N/A

>£1m

>£1m***

>£1m

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

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

95%* of all new Life Insurance 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

Life

Total value of claims paid

£32.6m

Average annual benefit/payment

£56,659

Highest annual benefit/payment

£675,000

Policy in force duration

9 yrs 2 mths

Ave. age customer at claim

Life*

Male icon

Male

63

Female icon

Female

63

An icon of a man and lady

Youngest customer

24

*These figures include claims paid for both our Life Insurance and Lifetime+ products. Our Lifetime+ product is no longer available.

Telephone icon

Contact us about Family Income Assurance

Quotes and questions: 0800 678 1890

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