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Income Protection

At LV= we believe everyone should be supported if they are ill and unable to work, with quality financial protection that pays out when it matters. The cover pays an on-going, regular benefit for up to 60% of your client's income, helping minimise the cost and impact ill-health can have on clients (and their families). It covers your client against all eventualities and includes a number of special features at no extra cost.

Features included as standard

  • Fracture cover at no extra cost
  • Parent and child cover
  • Death benefit
  • Payment of premiums during unemployment (payment holiday)
  • Sick pay guarantees
  • £1,500 benefit guarantee
  • Rehab support services
  • Cover for medical professions

Options

  • Cover up to 60% of your client's income
  • Level or inflation-linked cover
  • Budget 24-month payout period
  • Budget 12-month payout period (guaranteed premium basis only)
  • Guaranteed or reviewable premiums

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 your clients access to six medical services via one simple app or phone call

A closer look...

Fracture cover is automatically included with our FPP Income Protection policy. Unlike other products in the market, fracture cover isn’t an ‘optional extra’ (or separate policy) and clients don’t have to pay a separate premium.

We’ll pay your client a lump sum if they’re diagnosed with a specific bone fracture. There’s no waiting period and clients can spend the money on whatever’s important to them, although they might use it to cover a shortfall in income or pay expenses associated with their injury.

The amount we'll pay depends on the type of fracture.

  • Closed fracture of the skull £1,250
  • Fracture of the cheekbone £1,000
  • Fracture of the shoulder blade £1,000
  • Fracture of one or more ribs £650
  • Fracture of the pelvis £1,250
  • Fracture of the wrist £1,000
  • Fracture of the upper leg £2,200
  • Fracture of the lower leg £1,250
  • Fracture of the ankle £1,250
Skeleton showing the fractures covered with our Income Protection
  • Open fracture of the skull £2,200
  • Fracture of the jaw £1,000
  • Fracture of the collar bone £650
  • Fracture of the sternum £1,000
  • Fracture of the vertebra £1,000
  • Fracture of the arm £1,250
  • Fracture of the hand (excluding fingers and thumbs) £1,000
  • Fracture of the knee £2,200
  • Fracture of the foot (excluding toes) £1,000

Our fracture cover is paid in addition to any usual amount your client receives as part of an Income Protection claim. If your client is diagnosed with more than one fracture at the same time, we’ll pay for the fracture with the highest amount of fracture cover. We’ll only pay for one fracture diagnosed within a 12-month period, not all fractures are covered and certain exclusions apply. Please refer to the Policy Conditions for more information.

An example of how our fracture cover works

Jamie took out LV= FPP Income Protection last year (with a two month waiting period), she was involved in an accident and broke her leg (fracture of the upper leg).

Jamie makes a fracture cover claim a week after surgery and we pay her a £2,200 lump sum. We then start paying the monthly Income Protection claim amount after two months (her waiting period).

We’ll pay a fixed lump sum if your client dies before the end of their Income Protection policy. Unlike other products in the market, our death benefit is part of our contract (it’s not ‘discretionary’ or an ‘optional extra’), making it easier for you to explain how our cover works. The amount we’ll pay depends on when your client took out their policy:

  • We’ll pay £5,000 if your client dies within four years of the policy start date, or
  • £10,000 if your client dies four or more years after the policy start date.

The lump sum will be paid to the policyholder and will form part of their estate for tax purposes. This means the money may be subject to inheritance tax under current legislation, depending on their personal circumstances.

If your client has multiple Income Protection policies with us, we’ll only pay a maximum of £10,000, irrespective of how many policies held.

Examples of how our death benefit works

Louise took out a new LV= FPP Income Protection and then three years later passed away. Louise was not claiming on her Income Protection policy at the time of her death.

Her spouse, Carl, contacts us to cancel her policy and informs us of her death. We advise Carl that once we receive her death certificate we will pay her estate a £5,000 death benefit.


Sam took out a new LV= FPP Income Protection and then five years later was diagnosed with cancer. He’s unable to work and we are paying him £1,500 a month under his Income Protection policy.

Six months later, Sam sadly dies due to his illness. His spouse, Melissa, writes to inform us of his death and sends us the death certificate.

We stop paying the £1,500 monthly benefit and pay his estate a £10,000 death benefit.

If your client’s made involuntarily unemployed we won’t expect them to pay their premiums for up to six months (but their cover will continue). This can protect out of work clients and reduce the likelihood of their policy lapsing.

The ‘payment holiday’ has an initial exclusion period of 90 days after the cover starts, and is limited to six months in total during the policy term – which can be taken as multiple claims.

If your client takes out Income Protection alongside our Combined Life & Critical Illness policy, their payment holiday will cover their full Flexible Protection Plan premiums.

Some clients working in the public sector don’t always have straightforward sick pay arrangements. They might get paid 100% of their salary for a defined number of months, followed by 50% of their salary. Sick pay entitlement can also change with each year of service, making it difficult to choose the right waiting period.

We have designed our sick pay guarantees for teachers, as well as doctors, dentists and surgeons that receive NHS sick pay. Unlike other sick pay guarantees in the market, you don’t have to be employed directly by the NHS to be eligible. This means clients working in occupations covered by NHS sick pay but not directly employed by the NHS can also be covered, like GP’s.

Under our guarantees, as long as your client chooses a 12-month waiting period we’ll pay out to fit alongside their sick pay arrangements. This helps reduce the premium by removing the need for complex split waiting periods, removes the risk of over and under insurance and ensures your client gets their money when they need it. More details on our sick pay guarantees, including eligibility, can be found in our Policy Conditions.

We understand your client’s income can fluctuate, especially if they’re self-employed or rely heavily on commission and bonuses. And if their salary does drop, there’s a risk their salary will no longer support the level of cover you originally recommended to them.

At LV=, we don’t like the idea of your clients not getting what they pay for, which is why our Income Protection automatically includes a £1,500 benefit guarantee.

Client Scenario

Lady icon

If your client needs to make a claim, so long as they are:

Working at least 16 hours a week if self-employed

Or

Working at least 25 hours a week if employed

They will receive at least £1,500 a month, tax-free, guaranteed (or the amount of cover they chose if less).

The aim of this guarantee is to protect your client against a genuine drop in income after they take out the policy. And because we won’t deduct anything if your client receives state benefits, they’ll get that money on top of what we pay them too. However, payments from this policy may affect your eligibility to claim some state benefits and the amount you are able to claim.

LV= Income Protection includes a feature where we’ll pay a lump sum if your client’s child is diagnosed with a specific illness, or undergoes a specific operation or medical procedure*. The amount paid will equal six times the monthly amount of cover on the main Income Protection policy (subject to a maximum payment of £25,000) and covers one payment per child per policy. If your client has a Critical Illness policy with us we’ll pay this in addition to any claim made under their Income Protection policy.

We’ve developed this feature to offer comprehensive children’s cover across all our protection products. The money paid could allow clients to take unpaid leave from work to care for their child or cover costs associated with medical treatment.

*Exclusions apply. For more details on this, and the 54 conditions and medical procedures covered, please see the Income Protection policy conditions.

We want to help customers get back to full health as quickly as possible, improving their wellbeing and morale. To aid their recovery we can offer services including physiotherapy, psychological support, and return to work services. Our rehab support services are available during the waiting period, helping clients realise the true value of their income protection policy*.

*please note our rehab support services might be capped at three times the monthly benefit (per individual claim).

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

Income Protection

Budget Income Protection

Waiver of Premium

Type of pay-out

  • Monthly income after chosen waiting period.
  • Lump sum if your client dies before the end date.
  • Lump sum if your client is diagnosed with a specific bone fracture.
  • Lump sum if your client’s child is diagnosed with a specific illness, or undergoes a specific operation or medical procedure.
  • Monthly income after chosen waiting period.
  • Lump sum if your client dies before the end date.
  • Lump sum if your client is diagnosed with a specific bone fracture.
  • Lump sum if your client’s child is diagnosed with a specific illness, or undergoes a specific operation or medical procedure.

Pays the plan monthly premiums after a waiting period

Types of cover

Level/inflation-linked

Level/inflation-linked

N/A

Term

Minimum 5 years

Minimum 5 years

Age 69 or the end of the plan term if earlier

Minimum age attained at entry

17

17

17

Maximum age attained at entry

59

59

59

Maximum age attained at end of policy term

69

69

69

Minimum premium

£5 a month

£5 a month

Based on the total plan premium

Monthly cover limits

  • Level - £20,833
  • Index Linked - £14,583
  • Level - £20,833
  • Index Linked - £14,583

N/A

Maximum claim period

Lasts until the earlier of:

  • your client gets better
  • the policy end date
  • your client dies

Lasts until the earlier of:

  • 12* or 24-months claim period (multiple claims available)
  • your client gets better
  • the policy end date
  • your client dies

* Available on guaranteed premiums only.

Lasts until the earlier of:

  • your client gets better
  • the policy end date
  • your client dies

Waiting period

1, 2, 3, 6 or 12 months

1, 2, 3, 6 or 12 months

This will match the waiting period selected for Income Protection / Budget Income Protection. Maximum waiting period of 6 months

Split waiting periods available

Yes

Yes

Eligibility criteria

A permanent UK resident and have lived in the UK and have been registered with a UK GP for the last two years

A permanent UK resident and have lived in the UK and have been registered with a UK GP for the last two years

Your client must be a permanent UK resident

Extras
(included as part of the contract)

  • Career break option
  • Rehab support services
  • Fracture cover
  • Death benefit
  • Payment of premiums during unemployment
  • Sick pay guarantee
  • Member benefits
  • Parent and child cover
  • LV= Doctor services
  • Career break option
  • Rehab support services
  • Fracture cover
  • Death benefit
  • Payment of premiums during unemployment
  • Sick pay guarantee
  • Member benefits
  • Parent and child cover
  • LV= Doctor services

N/A

Income protection (IP) is an everyday essential which works when your client can’t. The cover protects your client’s income if they are unable to work because of an accident or illness and pays out an ongoing, regular benefit.

What’s the real risk?

The biggest financial risk your working clients are exposed to is being off work for two months or more because of an accident or illness, before their chosen retirement age. And without the right protection in place, the financial impact can be devastating. Not only maintaining the home and lifestyle they’ve worked so hard for, but having enough money to get by, so they can concentrate on getting better.

According to consumer magazine, Which? income protection is the one insurance policy every working adult should consider. However, it remains seriously undersold. At LV= we believe everyone should be supported if they’re ill and unable to work, with quality financial protection that pays out when it matters, which is why we recommend adding income protection to every client conversation.

Why should I lead my protection conversations with Income Protection?

If you asked your client to name their biggest asset, what would they say? Their house? If you think about it, your client’s house is actually their biggest liability (assuming they have a mortgage). And believe it or not, your client themselves is actually their biggest asset.

Client scenario
Lady icon

Lisa is 35, a smoker, and earns £27,000 a year. She'll be retiring at 68 (the earliest she'll be able to claim her state pension).

Over the course of her working life she'll earn over £1 million, something definitely worth protecting.

Using the Risk Reality Calculator, Lisa has a:

  • 59% chance of being unable to work for 2 months or more
  • 20% risk of suffering a serious illness
  • 10% risk of death
  • 66% likelihood of any of the above happening

Sales techniques

How do you introduce your client to the importance of protecting their income? Many advisers we work with use analogies or sales concepts to help clients understand the importance of protecting their income. All are very simple, involve the client and can be used with just a pen and paper and a bit of well practiced delivery. Here are a few tried and tested ideas:

Dovetailing (income) protection with your way of working

How do you set out your stall with your clients and where does the ‘protection conversation fit in?


Most protection is sold/taken out as a result of a life event, and most commonly when buying a/or moving home. The new MMR regulation is focused on people’s ability to afford and repay their mortgage. But the regulations fall short of requiring a borrower to have provisions in place to afford and repay their mortgage if their income stops.

As a professional adviser doesn’t it make good sense – and prove your value – to ensure your client is taken care of no matter what happens (good or bad)?

How do you set out your stall with mortgage clients? Some explain it very simply along the lines of

“I’m here to help you get the home you want and make sure you keep and enjoy it, come what may.”

Do you talk about the importance of affordability if the unexpected happens and the journey you’ll take them through? This doesn’t mean you have to dive straight into a protection fact find. It simply helps the client to buy into you, into what you do and what it gives to them. And it avoids any unwelcome surprises or awkward conversations down the line.

Some advisers find it helpful to ask their client for an overall mortgage and mortgage-related ‘monthly budget’. They use this to recommend mortgage and relevant cover (which could include buildings and home & contents too).

Where you fit the ‘protection’ conversation into your process is down to you. It needn’t be a totally separate exercise. As part of the affordability discussion for a mortgage many advisers capture income and outgoings. You can use a budget planner for that purpose, and start to sow the protection seed for later.

The four boxes

Designed to illustrate that many people forget to insure their most important asset... their earning power.


4 Boxes with £1k (TV), £10k (car) £100K (house) and £1m (anything precious).

Firstly draw a grid of 4 boxes. Write £1,000 in one box, £10,000 in the next, £100,000 in the third and £1 million in the last (or use more up-to-date or client relevant values, but hopefully you get the idea!)

Discuss each box in turn.

£1,000 represents the value of their plasma TV/surround system - does your client have theirs insured? (Most people do as part of their contents insurance).

£10,000 represents the value of a typical car. Is theirs insured? (Car insurance)

£100,000 represents the value of their home (you may want to update this amount to reflect house prices in your area!). Is theirs insured? (Buildings insurance)

Finally the £1 million box - ask your client what asset that might represent? It's by far their biggest ... The answer - is that it represents their present and future earnings.

Your client's income pays for everything in the other boxes and in life too, now and in the future. So ask and discuss, why don't they insure that? And they shall see the light....

The Money Making machine

Designed to highlight the source of the everyday things your client pays for, consumers and enjoys.


Crazy looking money making machine

You unlock the door to the cellar and down you go. There is a strange machine. You switch it on and crank the handle. Out come hundreds of shiny £1 coins, enough to pay the mortgage, feed and clothe you, keep you warm and safe.

Now you find out that the manufacturer has gone out of business and the machine can never be replaced.

However, all existing owners are offered a maintenance contract that, for a few pounds a month guarantees to keep working to produce the pounds you need each week. Would you take it? Of course you would.

The manufacturer is the client. The machine is the income the client produces each week. If the client is unable to work the money stops. The maintenance contract is ‘income protection’. The premium is the cost of the maintenance contract.

The plug

A client’s lifestyle might soon disappear if their income stopped. Save their life from going down the plughole.


Plughole surrounded with Income, Pension, Savings and Mortgage.

Draw a box and divide it into 4 quadrants with a circle in the middle> Write ‘Income in the top left box, Pension in the top right, ‘Savings in the bottom left and ‘Mortgage/Rent’ in the bottom right.

Suggest that your client isn’t able to work for a period ( a week, 1 month, 3 months… whatever you feel is relevant to them, depending on what sick pay they might get for their employer)

After that period, they’d lose their income (cross this box out)

Next they might stop paying in to their pension (cross this box out)

They could use their savings to get by and may be pay their mortgage and bills for a while… until they run out (cross out the savings box)…

… which would mean that they stop paying for their mortgage/rent… and lose their home (cross that box out)

Essentially, their life would disappear down the plughole…

Explain that you can give them a ‘plug’ that would stop all of that happening. It’s called income protection, would they like to learn more?

Budget planner and PIGY

A simple questioning and listening technique to help clients explore the impact of something ‘going wrong’.


A budget planner together with the simple ‘PIGY’ questioning structure can help this really come alive and make matters far more emotional.

It’s amazing how things add up. Use our budget planner to list and total all the things that a client pays for from their take-home pay. Then compare it to what support might be available from the State if they were unable to work because they were ill. Time to use ‘PIGY’

If you were unable to work…

  • “What Problems would you face?”
  • “What Implications would that have (for you and your family)?”
  • “What would you want/have to Give up?”
  • “How would that make You feel?”

The LV= Risk Reality Calculator

Strange isn’t it how people suddenly become invincible when discussing protection; convincing themselves that “it won’t happen to me”’? At LV=, we’ve developed a tool for advisers to use with clients that tackles this false perception head-on.


A simple and powerful online tool to help your clients grasp the importance of financial protection in just a few seconds. You just need to enter four personal details about your client and instantly their personalised results will reveal the likelihood of them...

  1. being unable to work for two months or more (due to sickness or accident)
  2. suffering a serious illness
  3. dying
  4. and the probability that any of these could happen before their chosen retirement age.

Help make your protection conversations with clients far more immediate, personal and real.

Visit the Risk Reality Calculator

We hope you find these ideas, guides and tools useful. If you have any feedback, please email us or speak to your LV= account manager.

Great reasons to choose LV= for Income Protection

Award winning

Award winning

Although we’re proud of our income protection product range, we were thoroughly delighted to scoop these prestigious awards back in 2017. It was a hat trick for LV= Income Protection – as we won all three industry awards.

This year we’re delighted to add Moneyfacts’ Best income protection provider for the ninth year running, to our collection.

Being recognised as the best provider with the best income protection, we would like to thank you for your support. And of course, this also gives you another reason to recommend LV= to yours clients.

Moneyfacts and Cover Excellence Awards Winner
Health Insurance Awards Winner
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 95%* of all Income Protection claims were paid in 2018 totalling over £14.3 million.

*95% Income Protection claims paid (includes new claims admitted in 2018 and those already being paid before 1 January 2018 that continued to be paid in 2018) 87% Income Protection for new claims admitted 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.
  • We don't have an automatic need to see a GP report for monthly cover amounts less than £12,501
  • 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, we could send a nurse to visit them at home or work or use a medical examiner at a convenient location.
  • 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.

State benefits

Current benefits- tax year 2019-20

Benefit

Amount per week

How long

Are my self-employed clients entitled to it?

Statutory Sick Pay

£94.25

Up to 28 weeks

Green tick

Clients in permanent employment

Red cross

Self-employed

Employment Support Allowance: Assessment rate

£57.90 under age 25

£73.10 aged 25 or over

Up to 13 weeks

Green tick

Clients in permanent employment

Green tick

Self-employed

Employment Support Allowance: Work-related activity group

Up to £73.10

Higher amounts were payable for applications made before 3 April 2017

Up to 52 weeks

Green tick

Clients in permanent employment

Green tick

Self-employed

Employment Support Allowance: Support group

£96.45 for under age 25

£111.65 for age 25 and over

n/a

Green tick

Clients in permanent employment

Green tick

Self-employed

  • Statutory Sick Pay - If your client's unable to work due to illness or injury and isn't entitled to sick pay from their employer, they might be able to get Statutory Sick Pay. This is paid for a maximum of 28 weeks; after 28 weeks, they may then be awarded Employment & Support Allowance. It’s also worth remembering self-employed clients aren’t entitled to Statutory Sick Pay.
  • Employment & Support Allowance - Employment and Support Allowance is not paid alongside SSP and is awarded to those unable to work due to illness or disability. During the first 13-week assessment phase, the state determines whether your client's illness or injury affects their ability to work. Claimants may then be awarded a higher rate of ESA which is regularly reassessed.

The amount they get depends on their circumstances. Try our online Shortfall Calculator to see how much they might get, and show how much their salary might drop if they were unable to work because of sickness or an accident.

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

Choice calculators to support your discussions

Income Shortfall Calculator

Show your client how little they'll have to live on if they were to be unable to work.

Split Waiting Period Calculator

Calculate the maximum LV= Income Protection available, through two separate policies.

Read below a summary of the relevant product information about our Income Protection and Budget Income Protection Policies, 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

This product is for clients who need a monthly benefit to help replace some of their income if they were unable to work due to an accident or long-term sickness. It can be used to help support their and /or their family’s current lifestyle and financial commitments.

This product is primarily aimed at clients in lower risk jobs, such as office workers, or those in professional occupations (such as accountants) who wish to protect their own income – whether they’re employed or self-employed. However clients can take out an Income Protection policy on a life of another basis, providing they have an insurable interest in the person being insured. For example if the client has a joint mortgage with someone and that person was unable to work due to accident or sickness and the client needed to cover the other person’s share of the mortgage.

The product offers a choice of waiting periods to reflect the financial needs and circumstances of your client.

The product covers your client for up to 60% of their gross income if they’re unable to work due to accident or sickness.

The product offers a number of bespoke features, as standard, for particular customer audiences

  • Tailored benefits to reflect particular career development paths and sick pay arrangements – for teachers, public sector employees, dentists and medical professionals
  • Lump sum payout in the event of a child’s serious illness – for parents
  • Homemaker cover
  • Fracture cover, a lump sum payment

We offer two versions of our Income Protection; Full and Budget Income Protection.

Under Full Income Protection, your client will be covered until they’re able to return to work, or their policy ends (whichever is soonest).

They can make as many claims as they need to during the policy term. If the claim is for the same illness or injury and within 6 months of returning to work, we may be able to start your client’s income protection payments again straight away, without having to wait for their waiting period. If your client is unable to work because of a different reason, we will treat it as a new claim and they will need to wait for their waiting period to end before the payments start.

Our Budget Income Protection is aimed at those clients looking for a lower premium, but whose protection needs can still be met with a limited benefit payment period. Budget Income Protection works in exactly the same way as our Full Income Protection with just one difference; we’ll only pay your client for a maximum of 12 or 24 months for a single claim (depending on the option chosen when the policy starts). This is called the claim limit. For Budget Income Protection with guaranteed premiums there is a choice of claim limit, either 12 months or 24 months. For Budget Income Protection with reviewable premiums there is no choice. The claim limit is fixed at 24 months.

Like for our Full Income Protection, with Budget Income Protection your client can make multiple claims if they need to.

If the claim is for the same illness or injury and within 6 months of returning to work, we may be able to start your client’s income protection payments again straight away, without having to wait for the waiting period as long as they haven’t reached their particular claim limit. If your client is unable to work because of a different reason, we will treat it as a new claim and they will need to wait for their waiting period to end before the payments start.

For Budget Income Protection if your client has homemaker cover – once we’ve made payments up to the claim limit of either 12 or 24 months for a particular claim, then the policy ends.

For self-employed clients, we will review their last 12 months’ income or, on request, consider the average over the last 36 months, to determine the maximum level of benefits payable at claim.

For clients in riskier jobs who can be more expensive to insure such as tradespeople, nurses, electricians, or those who find it difficult to who to prove how much they earn, for example self-employed clients, our Personal Sick Pay product may be more suitable.

To ensure your clients receive the right level of protection and to reduce the risk of the policy not paying out due to non-disclosure, we believe this product should only 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 and they are not paying for cover that they can’t claim on.

  • Pays a regular income benefit in the event the client is unable to work because of accident or sickness.
  • Own occupation definition of disability
  • Benefits paid until return to work or the policy ends, whichever is the earlier. For Budget Income Protection benefits are limited to a maximum of 12 or 24 months per claim (depending on the option chosen).
  • Fracture cover
  • Death benefit
  • Unemployment payment holiday
  • Level or inflation-linked cover
  • Benefit Guarantee
  • Guaranteed or reviewable premiums
  • Waiver of Premium option.
  • We won't pay a claim if your client becomes unemployed or is made redundant
  • The policy won’t pay out if the client is ill but continues to work
  • We won’t pay out in the event of a normal pregnancy
  • 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
  • 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
  • Benefits paid at claim may reduce any state benefits your client might be entitled to
  • Inflation linked cover – amount of cover will rise by the increase in the Retail Prices Index (RPI) and premiums by RPI x 1.5%
  • The minimum term is 5 years. The policy must end before the insured person reaches the age of 70
  • Clients can choose to take out a policy on a single life basis, on themselves or on a life of another
  • Clients can insure up to 60% of their earnings, up to a maximum of £250,000 a year for level cover and £175,000 a year for inflation-linked cover
  • A choice of waiting periods – 1, 2, 3, 6 or 12 months, or split waiting period options. Plus, tailored arrangements to match selected sick pay scheme arrangements
  • Any claim lasts until the earlier of the policy end date, your client dies or gets better
  • Under Budget Income Protection, the maximum claim period per claim is 12 or 24 months (depending on the option chosen)
  • Includes ‘Pay My Mortgage’ facility which enables your client, depending on their individual circumstances at the time of claiming, to have all or some of their IP claim paid directly to their lender to cover their regular mortgage payment
  • 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:

  • A UK resident for at least the last 2 years
  • Aged between 17 and 59
  • Registered with a UK doctor for at least the last 2 years
  • Employed, self-employed or considered a homemaker (stays at home to look after family, or a carer and aren’t doing any paid or unpaid work). If someone is claiming job seekers allowance when applying for the policy they will be considered unemployed and not eligible for income protection.

Is suitable for:

  • Protecting up to 60% of gross income (assessed at point of claim), if your client becomes unable to work due to illness or accident
  • 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
  • Those whose current level of income means state benefits alone would not provide a suitable level of replacement income for them
  • Clients who have an occupation covered by the policy.
  • Clients where a waiting period of 1, 2, 3, 6 or 12 months would be appropriate for their needs, (for some occupations 1 and 2 month waiting periods are not available)
  • Clients who wouldn’t qualify for state benefits, or wouldn’t want to rely on them for replacement income
  • Insuring someone else, where insurable interest exists
  • For Budget Income Protection clients where affordability is an issue but are comfortable and willing to accept a limited protection period for a single claim

Is not suitable for:

  • Clients who already have sufficient other forms of accident and sickness insurance in place that pay a monthly benefit if unable to work due to accident or sickness. For example mortgage protection, insurance or credit card protection that mean additional protection against loss of income is not needed. This is because we deduct amounts equal to the payments from other insurances that the client has when we pay their claim.
  • Clients who don’t need to protect their income, if they’re unable to work due to accident or sickness as they have savings which they’re prepared to use if they suffered a loss of income (referred to as self-insuring)
  • Clients looking to protect against unemployment, as this policy only protects for loss of income if they’re unable to work because of sickness or an accident
  • Clients who’ve already retired
  • Those who will, can, or are prepared to rely on state benefit payments to provide income replacement
  • Those looking to protect against terminal or critical illness with a lump sum payout
  • Businesses wanting to provide income protection for a key employee if they’re unable to work due to accident or sickness. This is because any benefits which are paid to the employee by their employer would have to be paid under PAYE, meaning the employee would receive significantly less than 60% of their income. There are other more suitable products in the market to protect a key person’s income.

The following features are included as standard within the product, and at no added cost. Conditions apply. For more details refer to the Policy Terms and Conditions.

Fracture cover: We will pay a separate lump sum in the event that your client is diagnosed with a specific bone fracture. (there’s no policy waiting period for this).

Parent & Child Benefit: We will pay a lump sum in the event of the client’s child being diagnosed with one of 54 specified conditions or illnesses, undergoes a specific operation or medical procedure.

Death benefit: If your client dies during the policy term, we will pay out a fixed lump sum of either £5,000 or £10,000 (depending on how long the policy has been in force).

Unemployment payment holiday: We will cover your client’s premiums for a defined period in the event that they become unemployed.

Benefit Guarantee: The aim of this guarantee is to protect your client against a genuine drop in income after they take out the policy. They will receive at least £1,500 a month, tax-free, guaranteed (or the amount of cover they chose if less).

Rehabilitation Support services: We want to help your clients with their recovery and return to work and can sometimes offer access to specialist services, even during the policy waiting period. For example: physiotherapy, counselling or other specialist treatment, rehabilitation services or financial support. The maximum we can pay for each claim might be capped at three month’s benefit. If your client makes a claim our team will look at the individual situation to see if there is anything they can do to help – all services offered are at our discretion.

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 medical services and advice, at no added cost. These include virtual GP consultations, prescription, second opinion services, remote physiotherapy, remote psychological services and discounted health MOTs. 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.

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

LV= Dr 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.

Waiver of premium is suitable for a client who would suffer a drop in their income, and as such would potentially be unable to pay for the premiums in their Flexible Protection Plan if they were unable to work due to sickness or an accident. 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.

Waiver of Premium 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.

  1. Pays FPP plan premiums on policyholder's behalf if they're unable to work due to sickness or accident
  2. Based on own 'occupation cover', or 'homemaker cover' definition
  3. 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.
  4. 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.
  1. The product does not pay out an actual cash amount, instead the client's FPP premiums are waived
  1. There is no cash in value at any time
  2. 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:

  1. Permanently living in the UK
  2. Aged between 17 and 59
  3. If they are insuring someone else, they must meet these requirements. If they are insuring two people both must meet these requirements.

There are no options or additional benefits.

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.
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 (monthly amount of cover)

Age next birthday

TI*

PSR**

Cotinine***

ME

BIOCHEM

PROF

HbA1c

GPR

HIV

To age 41

£2,521

£4,338

£4,338

£6,504

£6,504

N/A

N/A

£12,501

£10,001

42-46

£2,171

£3,254

£3,254

£4,338

£4,338

N/A

N/A

£12,501

£10,001

47-51

£1,738

£2,171

£2,171

£3,254

£3,254

N/A

N/A

£12,501

£10,001

52-56

£1,304

£1,521

£1,521

£2,171

N/A

£2,171

£2,171

£12,501

£10,001

57-60

£871

£1,088

£1,088

£1,521

N/A

£1,521

£1,521

£12,501

£10,001

* TI not required if PSR or ME or GPR required. ** PSR not required if ME required. *** 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.
  5. We offer your client free access to a medical second opinion from one of the UK’s biggest networks of medical professionals through LV=’s partner Square Health.
Claims performance

95%* of all new Income Protection 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.

Claims summary 2018

Income Protection

Total value of claims paid

£14.3m

Average monthly benefit

£1,221

Highest monthly benefit

£8,333

Policy in force duration

9 yrs 1 mth

Ave. age customer at claim

Income Protection

Male icon

Male

48

Female icon

Female

44

An icon of a man and lady

Youngest customer

22

*95% Income Protection claims paid (includes new claims admitted in 2018 and those already being paid before 1 January 2018 that continued to be paid in 2018) 87% Income Protection for new claims admitted in 2018.

Telephone icon

Contact us about Income Protection

Quotes and questions: 0800 678 1890

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