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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

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 early as long as it's not in the last 12 months of the plan.

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 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, 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.

Product profile for Life Insurance

Read below a summary of the relevant product information about Life Protection, 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.

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’s particularly useful for people who have a financial commitment like a mortgage or loan, where their dependants would still be liable for the debt if they died.

Distribution

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

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

Main features

  • Pays a cash lump sum on death, or diagnosis of a terminal illness, during the term
  • Level, inflation-linked or decreasing 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 5 years and maximum term 45 years. The policy must end before the any person insured reaches the age of 85 (for level and decreasing cover ) or age 70 (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 and decreasing cover)
  • Aged between 17 and 59 (for inflation-linked cover)

Suitability

Is suitable for:

  • Providing a lump sum if the insured dies, or is diagnosed with a terminal illness during the term of their policy
  • Those who want certainty that their premiums are guaranteed not to change (unless they ask or have chosen inflation-linked cover)
  • Those who are not willing/able to self-insure or do not have funds elsewhere
  • Those who need cover before they reach the age of 85 (for level and decreasing cover or age 70 (for inflation-linked cover) as these are the maximum ages at which the policy can end
  • Those who need cover for at least 5 years, as this is the minimum term for the policy

Level cover is suitable for:

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

Decreasing cover is suitable for:

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

Inflation- Linked cover is suitable for:

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

Is not suitable for:

  • Those looking for a product to pay a regular benefit if they are unable to work for a period of time due to accident or sickness
  • Those looking for a product to pay a lump sum if diagnosed with a critical illness
  • 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 want their premiums to be reviewable
  • Clients who don’t have any financial dependants
  • Those who are looking to protect themselves for the rest of their life

Level cover is not suitable for:

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

Decreasing cover is not suitable for:

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

Inflation-linked cover is not suitable for:

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

Options and additional benefits

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

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

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

Waiver of Premium: Your client can add waiver of premium when they take out their policy, or once it is on 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.

Product profile for Waiver of Premium

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.

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 Conditions.

Target market

Waiver of Premium forms part of the Flexible Protection Plan and is designed to pay the premiums for all policies (with the exception of Relevant Life Cover) under their plan, if the person insured is unable to work due to accident or sickness for longer than the waiting period.

The waiting period for this product is set at six months, unless it includes Income Protection or Personal Sick Pay, where the waiting period will match the one chosen for that product.

Flexible Protection Plan is suitable for a client who suffers a financial loss in the event of ill health, accident or sickness or has financial dependents who would suffer financially in the event of their death. The target market varies for each of the products within the Flexible Protection Plan, so it is recommended to refer to the specific products for further information.

This product cannot be set up as a standalone policy.

Distribution

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.

Main features

  • Pays FPP plan premiums on policyholder’s behalf if they’re unable to work due to sickness or accident
  • Based on own ‘occupation cover’, ’or ‘homemaker cover’ definition
  • Once the person insured reaches 70, regardless of how they were being measured, the basis changes to work tasks measures. This means they are totally unable to carry out 3 or more tasks from a list of everyday activities.
  • Standard waiting period of 6 months. Except where Waiver of Premium is attached to an LV= FPP Income Protection or Personal Sick Pay policy. In which case, the Waiver of Premium policy will adopt the waiting period the client has chosen for IP/PSP.

What is not covered

  • The product does not pay out an actual cash amount, instead the client’s FPP premiums are waived

Risks

  • There is no cash in value at any time
  • If your client stops paying their premiums, their cover may cease

Limits and basis

  • 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

Eligibility

To apply clients must be:

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

Suitability

Is suitable for:

  • Those who are looking to cover their premiums in the event they are unable to work due to an accident or sickness
  • Those who have existing or are looking to take out policies within the Flexible Protection Plan
  • Those who meet the eligibility requirements for Waiver of Premium

Is not suitable for:

  • Those who do not have any LV= Flexible Protection Plan policies in place
  • Those who want to cover their premiums on Relevant Life Cover in the event of an accident or sickness
  • Those who are unemployed
  • Those looking to replace their monthly income in the event of accident or sickness

Options and additional benefits

There are no options or additional benefits.

Costs

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

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.
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.

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