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Income Protection

Great reasons to choose LV= for Income Protection

For us, protection isn't about offering basic cover at the cheapest price – we want to be here for your client when they need us most.

Fracture cover

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

We’ll pay your client a lump sum of up to £2,200 if they’re diagnosed with a specific bone fracture. The amount we’ll pay depends on the type of fracture and is paid in addition to any 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 (for example, hairline or stress) and certain exclusions apply. Please refer to the Policy Conditions for more information.

Death payment

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.

Payment of premiums during unemployment (payment holiday)

If your client becomes 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 premium.

Sick pay guarantees

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 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.

Parent and child cover

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.

Self-employed clients

We understand self-employed income can fluctuate, so we’ll take into account up to the last three years of their income when working out the maximum benefit we can pay them.

£1,500 benefit guarantee

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.

As long your client was working at least 16 hours a week (if self-employed) or 25 hours a week (if employed), if they need to make a claim, they’ll receive at least £1,500 a month, tax-free, guaranteed (or the amount of cover they chose if less).

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.

It's important to understand the aim of this guarantee is to protect your clients against a genuine drop in income after their policy starts. So to be fair to all our policyholders we reserve the right not to apply the guarantee if your client's earnings didn't support the level of cover they originally chose.

Budget option

Where affordability is an issue, having some cover in place is better than none. This is where budget income protection comes in, which offers a cheaper way of being covered but with a maximum pay-out of 24 months per individual claim.

Homemaker cover

Pays out if, because of an accident or sickness, your client is unable to prepare a meal or do basic housework. Maximum cover provided is £1,500 a month.

Great coverage options

Our income protection now has a maximum age of 70. All occupations also have the option of 1, 2, 3, 6 or 12 month waiting periods, which means your client can have their money as soon as possible.

Better support while claiming

  • We want to help your clients get back to work sooner, helping improve their wellbeing and morale. So if we’re paying a claim, your client could be eligible for rehabilitation support and advice, preparing them for their return to work. This could include private medical care, things like counselling or physio, or even treatment not available on the NHS. The amount is limited to one months' cover.
  • If your client is claiming on 'own occupation' cover and takes on a new job, but earning less than their previous one, we'll continue to provide financial support.

Overseas cover

Unlike some other providers, we don't place a limit on the amount of time that your client can spend overseas and won't cancel cover because of this. But if they're outside of Europe, USA, Canada, Australia or New Zealand when they claim we'll only be able to pay for a maximum of 26 weeks, unless they then move back to one of these areas.

We adapt to your client's changing circumstances

We've designed our Income Protection so your client's cover can adapt as their life goes on.

  • Your client doesn't need to tell us that they've changed their job, however they may want to check with us whether their new job would give them a lower premium.
  • If your client's income drops and their cover is over the 55% we'll pay of their income, we'll ignore up to 10% of the over-insurance.
  • If your client stops working (and tells us) we may be able to reduce the premium they pay, to reflect the reduced cover. We may only pay up to £1,500.
  • If their income goes down they may qualify for our £1,500 benefit guarantee.
  • Lastly, we can increase the cover (with certain limits) without medical underwriting if they:
  • get married/enter into a civil partnership
  • have a baby or legally adopt a child
  • increase their mortgage because they move or improve their home
  • are an employee and have a basic salary increase of more than 10%
  • are an employee and have a significant career increase of at least 20% of their salary (can only be used once)

Please read the policy conditions to understand these features in full.

Award-winning service

We're highly recognised for the quality of our products and the service we provide.

Strong claims performance

It's important to recommend a provider you can trust to pay out when your client really needs it. We're proud of our claims performance, paying 96% of all Income Protection claims in 2017 (including new claims admitted in 2017 and those already being paid before 1 January 2017 that continued to be paid in 2017 and we paid 88% of IP for new claims admitted in 2017). The average annual payment across new and existing Income Protection claims is £14,234.

Full Income Protection claims breakdown.

Expert tele-interviewing service

Our in-house, UK-based team can complete the application process for you, saving you time and making applications hassle-free. They'll make sure the information collected is accurate, reducing the risk of non-disclosure and taking the worry and responsibility away from you. By using this service you could also avoid long delays with GP reports so your client could be underwritten and accepted quicker.

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, however much cover your client requests.
  • 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).
  • And lastly, we have a dedicated underwriting hotline to help you iron out any potential issues your client may have.

Large Case Team support

For income protection cases over £5,000 a month, we'll offer you dedicated support from our Large Case Team, who you can rely on to look after your application. They'll deal with the application from start to finish, and actively chase and review evidence to get the cover in place as quickly and smoothly as possible.

We're a mutual, not a PLC

As a mutual, we don't have to answer to external shareholders - so we can concentrate on looking after you and your clients.

Member benefits

When your client takes out an Income Protection plan, they become a member of LV=. This entitles them to benefits including:

  • a say in our annual general meetings (once they've had a policy for 12 months)
  • discounts on our car, home, pet and travel insurance products
  • free member care line on health and medical matters, counselling and legal issues

0800 678 1890

TextDirect: first dial 18001

8.30am - 6.30pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.


Personal Sick Pay

Find out more about our Personal Sick Pay product; income protection for clients in riskier jobs.

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LV=, County Gates, Bournemouth, BH1 2NF, UK