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Life Insurance

If your client were to die, this could leave their surviving dependents such as spouses or children suddenly facing financial hardship.

Our Life Protection policy, part of the Flexible Protection Plan, can help, whether it’s to help pay off a mortgage, help support your client’s children if they go off to university or just make sure that your client's family has money to live on.

Features included as standard

  • Guaranteed Premiums
  • Pays a cash lump sum on death during the term
  • Terminal illness cover

Options

  • Level, increasing or decreasing cover
  • Single or joint life
  • Waiver of premium
  • Critical Illness cover
  • Waiver of premium

Product Profile

A summary of the relevant product information about Life Insurance, in accordance with the Insurance Distribution Directive.

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.

Life Insurance provides a one-off payment if your client dies, or diagnosed with a terminal illness before the end date of the policy. If two people are under the same policy, it will pay out if either person dies and the the policy will end.

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

A terminal illness is in the opinion of our Chief Medical officer, an incurable illness where life expectancy is less than 12 months. When this happens, we'll pay out during the term of their policy.

Once we’ve paid a terminal illness claim on this policy, it will automatically end.

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

Life Protection

Waiver of Premium

Type of payout

Lump sum

Pays your plan monthly premiums after the waiting period

Type of cover

Level/inflation-linked/decreasing

N/A

Term

Between 5 and 45 years

To age 69 or 84 or to the end of the plan term if earlier

Minimum age attained at entry

17

17

Maximum age attained at entry (level/decreasing)

79

59

Maximum age attained at entry (inflation-linked)

59

59

Maximum age attained at end of policy term (level/decreasing)

84

69 or 84 depending on the policies chosen

Maximum age attained at end of policy term (inflation-linked)

69

69 or 84 depending on the policies chosen

Minimum premium

£5 a month

Based on the total plan premium

Waiting period

None

6 months

Eligibility criteria

Your client must be a permanent UK resident

Your client must be a permanent UK resident

There are many reasons for life 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.

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:

  1. the clients' ages
  2. the term of the cover
  3. if it's decreasing (cheapest), level or inflation-linked (the most)
  4. if they smoke
  5. 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, starting with a BMI score of 31 for clients under 30. Our Underwriting Guide for personal protection sets out all the ratings and if you have any questions, then please 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 Life Insurance

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 99%* of Life Insurance claims were paid in 2019 and a total value £60.4m claims paid

*Our Life Insurance figures include claims paid for our Life Insurance, Terminal illness, and whole of life products. Our whole of life products are 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, 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.

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.

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

PSR*

Cotinine**

GPR

ME

HIV

BIOCHEM

PROF

HbA1c

EXECG

To age 35

£750,001

£900,001

>£1m

>£2m

>£1.5m

>£2m

N/A

N/A

>£7.5m

36-40

£600,001

£900,001

>£1m

>£2m

>£1.5m

>£2m

N/A

N/A

>£7.5m

41-45

£500,001

£800,001

£750,001

>£2m

>£1.5m

>£2m

N/A

N/A

>£5m

46-50

£400,001

£700,001

£600,001

>£1m

>£1.5m

>£1m

N/A

N/A

>£4m

51-55

£250,001

£550,001

£400,001

>£1m

>£1.5m

N/A

>£1m

>£1m

>£3m

56-60

£200,001

£450,001

£300,001

£750,001

>£1.5m

N/A

>£1m ***

>£1m

>£2m

61-65

£100,001

£250,001

£150,001

£500,001

N/A

N/A

>£1m ***

>£1m

>£1.5m

Over 65

£75,001

£150,001

£100,001

£250,001

N/A

N/A

>£1m ***

>£1m

>£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.
  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

99%* of all new Life Insurance claims were paid in 2019

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 2019 claims performance.

Protection summary 2019

Life*

Total value of claims paid

£60.4m

Average claim payment

£10,747

Highest claim payment

£584,000

Average age of policy at claim

8 yrs 2 mths

Ave. age customer at claim

Life*

Male icon

Male

72

Female icon

Female

73

An icon of a man and lady

Youngest customer

28

*Our Life Insurance figures include claims paid for our Life Insurance, Terminal illness, and whole of life products. Our whole of life products are no longer available.

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