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Help keep business owners keep control of the company if one of them dies or is diagnosed with a critical illness.

Share Protection and Partnership Protection

Share Protection and Partnership Protection is sometimes referred to as ‘Owner’s Insurance’ and help business owners keep control of the company if one of them dies or is diagnosed with a critical illness.

Features included as standard

  • Pays a cash lump sum if the shareholder or partner insured dies
  • Terminal illness cover included at no extra cost
  • Guaranteed premiums

Options

  • Critical Illness cover
  • Level, decreasing or Inflation-linked cover
  • Waiver of premium

Additional services

  • Access to the LV= member helpline gives 24/7 access to health advice, counselling services and expert legal advice
  • LV= Doctor Services which gives gives your clients access to 3 expert medical advice services through one handy app wherever they are
  • LV= Business Care which gives your clients free access to legal and tax experts available at the end of the phone, when they need them

A closer look...

Share Protection is life insurance taken out on the life of the company’s shareholders. It can also include critical illness cover, which will pay out a lump sum if the shareholder is diagnosed with a specific illness or injury covered by the policy, and survives for at least 14 days. In the event of a claim, the proceeds from the policy give the remaining shareholders the money needed to buy the shares, helping retain control of the business.

If the key person insured is diagnosed with a terminal illness, their priorities may change and could decide to stop working and concentrate on the things that matter to them the most- family, missed life experiences or even just be too unwell to work. When this happens we'll pay the sum assured early.

What is a terminal illness?

This is an incurable illness, where in the opinion of an attending medical consultant and our Chief Medical Officer, they would not be expected to live for more than 12 months. We'll then pay the sum assured as long as it's not in the last 12 months of the plan.

The premium is guaranteed. This means we won’t change it unless you ask us to change the policy or, unless you inflation-linked cover has been chosen.

Inflation-linked cover your cover will increase by inflation each year and premiums will increase by inflation multiplied by 1.5.

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

Details

Life Protection

Life and Critical Illness cover

Waiver of Premium

Additional features

N/A

  • Children's critical illness cover
  • LV= Legal & Wellbeing line
  • Business Protection cover

N/A

Type of pay-out

Lump sum

Lump sum/s including our additional payment claims

Pays your plan monthly premiums after the waiting period

Types of cover

Level/inflation-linked/decreasing

Level/decreasing/inflation-linked

N/A

Term

Between 5 and 45 years

Between five and 40 years

Age 69 or the end of the plan term if earlier

Minimum age attained at entry

17 years

17 years

17 years

Maximum age attained at entry

59 years

59 years

59 years

Maximum age attained at end of policy term

84 years

69

69

Minimum premium

£5 a month

£5 a month

Based on the total plan premium

Waiting period

None

N/A

6 months

Eligibility criteria

Your client must be a permanent UK resident

Your client must be a permanent UK resident

Your client must be a permanent UK resident

Number of Critical Illnesses covered

N/A

64

N/A

A quick guide to Share Protection and Partnership Protection

Share Protection and Partnership Protection is sometimes referred to as ‘Owner’s Insurance’ and helps business owners keep control of the company if one of them dies or is diagnosed with a critical illness. The cover you recommend depends on the business set-up:

  • Share Protection is for limited companies
  • Partnership Protection is for partnerships and limited liability partnerships

How to position Share and Partnership protection with clients

Losing an owner can have a huge impact on the day-to-day running of a business, and can quickly result in financial difficulties. Boardroom confusion can lead to conflict in decision making, as the surviving owners and the deceased’s family may have very different ideas about the future of the business. Other potential problems include:

  • If the shares are sold on the open market, a new business owner could take-control of the day-to-day running of the business. That new business owner could be a competitor or completely unsuitable for the business
  • If the deceased owner's family are willing to share the shares, the surviving owners could have trouble raising the finances and disagreements over the terms of the sale could lead to further difficulties
  • Uncertainty over ownership may cause banks and investors to re-structure or cancel funding

Top tip

We recommend you review your client’s protection requirements regularly to take into account any changes in business value or shareholding.

Cover by business type

Key Person Cover should be set up differently to match the needs of different business types. The table below can help show how Key Person Cover is best applied and how to get the most out of our policy.

Who should be insured

Shareholder

Benefits

The remaining business owners keep control of the company (control isn’t passed onto anyone else).

The sold shares get fair value – without available capital (and a cross option agreement) the shares could be sold by the deceased owner’s family at below market value (for a quick sale).

The arrangement is tax-efficient.

How to set up the cover

Own life: each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement. The remaining partners use the money paid under the claim to buy the shares.

Life of another: if there are only two or three business owners, they can take out life-of-another plans on each other. The owners also sign a cross option agreement. The claim is then paid to the remaining business owners who use the proceeds to purchase the deceased’s shares.

Who should be insured

Partner

Benefits

The remaining business owners keep control of the company (control isn’t passed onto anyone else).

The sold shares get fair value – without available capital (and a cross option agreement) the shares could be sold by the deceased owner’s family at below market value (for a quick sale).

The arrangement is tax-efficient.

How to set up the cover

Own life: each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement. The remaining partners use the money paid under the claim to buy the shares.

Life of another: if there are only two or three business owners, they can take out life-of-another plans on each other. The owners also sign a cross option agreement. The claim is then paid to the remaining business owners who use the proceeds to purchase the deceased’s shares.

Who should be insured

Partner

Benefits

The remaining partner/partners keep control of the company.

How to set up the cover

Own life: each partner takes out a plan on their own life which is written in trust for the other business owners.


How much cover

Valuing a company can be difficult and surviving shareholders will need enough money to purchase the lost business owner’s shares. In the absence of an accountant’s valuation, as a guide, you should consider looking at the following when setting the cover.

  • Net profit from the last 3 years
  • Assets (such as property, vehicles, specialist equipment)
  • Liabilities
  • And price earnings ratio (assuming future performance)

In general, the amount of cover you recommend should equal the market value of each owner’s share of the business.

If a business had four partners each with an equal share, you might expect the owners to each pay 25% of the total premiums. However, if one partner is older, or has pre-existing conditions, the premiums will increase (just like personal protection). Premium equalisation makes sure business owners who take out Share or Partnership Protection only pay an amount that is commercially relative to the benefits they stand to gain.

It’s important to equalise premiums; missing out this essential step means any money paid under a claim could be liable to income inheritance tax (HMRC consider premium equalisation essential for commercial arrangements).

Our easy-to-use LV= Premium Equalisation Calculator helps you split the overall premium costs between the business owners, according to their individual share and protection risk. If using the calculator, print off two copies of the report, one for your client’s accountant and one for your own file.

We’ve developed a number of calculators to help you successfully position and recommend Business Protection.

  1. Our Business Valuation calculator has been designed to help you and your client value the business accurately. This calculator calculates the potential value of the business by using the average net profits, net assets and a profit multiplier.
  2. The Premium Equalisation calculator will show you how to split the premium costs fairly between the shareholders or partners, taking into account their shareholding, age and health. The principle behind equalisation is that each individual should pay a commercial amount relative to the benefit they or their family is likely to receive.
  3. Our Business Risk calculator will help you demonstrate the likelihood of health issues affecting key people, as well as the financial impact this would have on the business.

Head over to the tools and calculators area to get started.


An example of how Share Protection could safeguard a growing business

Losing an owner can have a huge impact on the day-to-day running of a business, and can quickly result in financial difficulties. Boardroom confusion can lead to conflict in decision making, as the surviving owners and the deceased’s family may have very different ideas about the future of the business

The example below shows how Share Protection cover can be used to help clients who want to secure the a growing business if something happened to one of their partners. Please note that this is an example only and is not based on a real company.

Clive

Clive

Simpson & Partners

The business is worth £1,500,000 and each partner has an equal share. In the event of one of them dying before retirement, the business owners want the option to be able to buy the deceased partners shareholding.

John and Charlotte

John and Charlotte

green arrow pointing down
Green tick in a circle

Scenario 1

The partners take out Partnership Protection £500,000 life insurance on an own life basis.

green arrow pointing down
  1. Clive dies unexpectedly.
  2. The £500,000 benefit is paid to the surviving partners. The money (and cross option agreement) means the partners can buy out the share of their late colleague.
  3. Clive’s family receive pre-agreed fair value for their loved one’s share of the partnership.
  4. The business carries on trading.
Red arrow pointing down
Red cross in a circle

Scenario 2

The company doesn't take out Partnership Protection.

Red arrow pointing down
  1. Clive dies unexpectedly.
  2. The remaining partners don’t have the funds available to buy the deceased’s share.
  3. Clive’s family are unable to efficiently realise the value of their loved one’s share of the partnership.
  4. The future of the partnership is thrown into doubt as ownership is diluted and decision making becomes difficult.

Background

  1. Traditional partnership with three partners.
  2. Equal share of £500,000 each.
  3. Insufficient capital to cover each partners' share at short notice.

Simpson & Partners is a legal firm with three partner solicitors and more than twenty staff, and has grown considerably over recent years. All three partners have an equal share in the business and considerable influence in the company’s day-to-day running and success. Each partner has a share of the business valued at £1,500,000.

The partners are all currently fit and healthy, in their mid-40s, and don’t expect to retire for another twenty years. As solicitors, they understand why Business Protection is important – they also realise if one partner where to suddenly die, there would be no available capital to buy the deceased’s share, exposing the business to considerable risk.

Share Protection solution

After meeting their Financial Adviser, Simpson & Partners take out Partnership Protection in the form of three separate life insurance policies, on an own life basis written in trust for the other partners. Each policy would pay out £100,000 to the remaining business owners if one of them died before retirement. And a cross option agreement is also signed giving the remaining partners the option to buy the deceased’s share of the business while allowing the family to efficiently sell it.

Five years later, one of the partners dies unexpectedly and the surviving business owners make a claim, providing them with the capital needed to buy the deceased partner’s share. The cross option agreement ensures this process happens as smoothly as possible.

Without Partnership Protection, the surviving partners would not have had the money needed to buy the deceased’s shareholding meaning the deceased partner’s family could have sold it on the open market, undervalued and to a competitor (or other unsuitable buyer).

Great reasons to choose LV= for Key Person Cover

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* and 89% of critical illness claims paid in 2018 and an average annual payment across all new Life Insurance Claims of £56,659 and £78,334 across new Critical Illness claims.

*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.


LV= Business Care

LV= Business Care is designed for small business owners and is available as soon as your client takes out LV= Business Protection cover. Our service gives your clients free access to legal and tax experts available at the end of the phone, when they need them.

Our service offers advice in two key areas, Legal and Tax;

Business legal advice

Direct access to legal experts specialising in business and commercial law; covering areas such as;

  • Employment law and tribunal claims
  • Health & Safety law and requirements
  • Disputes including tenancy and debt recovery
  • Commercial and contractual disputes

Advice is available 24 hours a day, 7 days a week

Business tax and VAT advice

Direct access to business tax and VAT experts made up of accountants and ex HMRC employees, covering areas such;

  • Tax and VAT relief
  • Completing a self-assessment return
  • Current and changes to tax rules
  • Dividends paid from limited companies
  • Receiving a tax investigation notice

Advice is available Monday-Friday 9am-5pm

When setting up key person cover we recommend that you use our Business Risk calculator to bring to life the likelihood of health issues affecting key people within the business and the subsequent financial impact. Our Key Person Cover calculator will help you in recommending the correct amount of cover for each key person.

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.

Use the drop down menu to select the relevant section, then copy and paste it into your suitability letter.

 

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

When setting up Share or Partnership Protection, it's essential to understand the potential value of the business. This helps to set the sum assured for cover purposes.

When setting up protection for shareholders or partners, the cost of cover is often shared (or equalised) between them. This calculator quickly works out how to fairly split the total premium cost between the shareholders or partners, relative to the benefits they stand to gain.

As this an integral part of setting up such an arrangement, therefore the calculations also need to be shared with the company’s accountant to check and implement.

How we use personal information. Find out how we use your personal information, and what rights you have by visiting How we use your personal information. This includes who we are, how long we hold information, what we do with it and who we share it with.

Read below a summary of the relevant product information about Business Protection Life Insurance, 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 Key Features document and the Policy Conditions.

Business protection is aimed at small and medium-sized businesses (SMEs) to help safeguard their financial future by providing a one-off cash payment in the event that the business owner or key person dies or is diagnosed with a terminal illness.

Business protection targets three key elements - ownership, profit and debt. It’s important to understand the setup of the client’s business, who the owners are and the risks they face to help identify and justify the need for business protection and the basis for the policy. The different types of business protection are Key Person Cover, Share and Partnership Protection.

A key person could be the business owner, director, sales person or any employee with specialist skills or expertise. Losing a key person can be disastrous for the long-term survival of a business and the proceeds from a policy can give the business a cash injection, either used to protect profits or clear debt to help trading continue.

The client can choose whether the policy is written on an own life or life of another basis, with the exception of Limited Liability Partnerships or Limited Companies. For these types of business structures, the policy should be set up on a life of another basis, with the company taking out a policy and insuring their shareholder/partner or key person.

Key Person Cover would not be used to protect ownership of the business and if a business wants to protect profit and debt, two separate policies would need to be set up to cover each element.

The setup of the policy depends on who is being insured, and the business type as explained below:

Business Type

Policy written on life of Employee

Policy written on life of business owner

Own life or Life of another

In Trust Y/N

Own life or Life of another

In Trust Y/N

Sole Trader

Life of another

No – sole trader is policy owner

Own Life

Yes – for family of business owner

Partnership

Life of another

Yes – in trust for partners

Own Life

Yes – in trust for partners

Limited Company, or Limited Liability Partnership (LLP)

Life of another

No – Limited Company or LLP is the policy owner

Life of another

No - Limited Company or LLP is the policy owner

The policy provides the owners of a business with a lump sum to buy the affected individual’s share of the business in the event of them dying or being diagnosed with a terminal illness, helping the surviving owners retain full control and ensure the deceased family’s estate receives fair settlement. The business owners can choose whether the policy is written on an own life or life of another basis however life of another is usually only suitable where there are just two owners, and doesn’t provide any flexibility for future business changes.

Regardless of whether the policy is written on an own life or life of another basis a suitable double or cross option arrangement needs to be in place which facilitates the sale of the deceased’s share to the surviving owners.

To ensure your clients receive the right level of protection and to help ensure the policy is set up to meet the business’s needs, 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.

  • Pays a cash lump sum on death, or diagnosis of a terminal illness, during the term
  • Level, increasing or decreasing cover
  • Guaranteed premiums only
  • We won't pay a claim if the person insured dies as a result of intentionally taking their own life in the first 12 months of the policy
  • This policy is not suitable for clients who want to protect their income should they be unable to work due to accident and sickness
  • 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
  • The minimum term is 5 years and maximum term 45 years. The policy must end before 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 an own life (written into trust) or life of another basis for either someone crucial to the firm’s profits, or one or more business owners. If your client is insuring someone else, they must meet these requirements.
  • For policies written under trust, it will depend on the structure of the business as to how the trust is set up.

To apply, the client 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)
  • Those looking for personal protection
  • Those wanting to provide a death in service benefits for employees
  • Those looking to cover a regular benefit if the person insured is unable to work for a period of time due to accident or sickness

Guaranteed Increase Options: Your client can increase the amount of the cover for their employee, 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 of the employee at the time of change. For more details, refer to the Policy Terms and Conditions.

Member benefits: With this policy the insured person 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= Business Care: For all new policies (from 1 October 2015), we offer the policyholder (the business) telephone access to free specialist advice in business and commercial law, business tax and VAT. Provided at no added cost, these services are non-contractual and can be changed or removed at any time, and conditions apply. More details about LV= Business Care are available at LV.com.

LV= Doctor Services: For all new policies (from 1 September 2018), the person insured under the policy has access to a number of medical services and advice which can be accessed via one simple app or phone call, at no added cost. These include Remote GP, Second Opinion, Prescription 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.

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

LV= Doctor Services, LV= Business Care and Rehab Support Services are provided by third party companies. These services are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

Read below a summary of the relevant product information about Business Protection Combined Life and Critical Illness Cover, 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 Key Features document and the Policy Conditions.

Business Protection Combined Life and Critical Illness Cover is aimed at small and medium-sized businesses (SMEs) to help safeguard their financial future by providing a one-off cash payment in the event that the business owner or key person dies or is diagnosed with a critical illness.

Business protection targets three key elements - ownership, profit and debt. It’s important to understand the setup of the client’s business, who the owners are and the risks they face to help identify and justify the need for business protection and the basis for the policy. The different types of business protection are Key Person Cover, Share and Partnership Protection

A key person could be the business owner, director, sales person or any employee with specialist skills or expertise. Losing a key person can be disastrous for the long-term survival of a business and the proceeds from a policy can give the business a cash injection, either used to protect profits or clear debt to help trading continue.

The client can choose whether the policy is written on an own life or life of another basis, with the exception for Limited Liability Partnerships or Limited Companies. For these types of business structures, they should be set up on a life of another basis, with the company taking out a policy and insuring their shareholder/partner or key person.

Key Person Cover would not be used to protect ownership of the business and if a business wants to protect profit and debt, two separate policies would need to be set up to cover each element.

The setup of the policy depends on who is being insured, and the business type as explained below:

Business Type

Policy written of life of Employee

Policy written on life of business owner

Own life or Life of another

In Trust Y/N

Own life or Life of another

In Trust Y/N

Sole Trader

Life of another

No – sole trader is policy owner

Own Life

Yes – for family of business owner

Partnership

Life of another

Yes – in trust for partners

Own Life

Yes – in trust for partners

Limited Company, or Limited Liability Partnership (LLP)

Life of another

No – Limited Company or LLP is the policy owner

Life of another

No - Limited Company or LLP is the policy owner

The policy provides the owners of a business with a lump sum to buy the affected individual’s share of the business in the event of them dying or being diagnosed with a critical illness, helping the surviving owners retain full control and ensure the deceased family’s estate receives fair settlement. The business owners can choose whether the policy is written on an own life or life of another basis however life of another is usually only suitable where there are just two owners, and doesn’t provide any flexibility for future business changes.

Regardless of whether the policy is written on an own life or life of another basis a suitable double or cross option arrangement needs to be in place which facilitates the sale of the deceased’s share to the surviving owners. As critical illness cover is included a suitable single option agreement should also be in place to allow a shareholder to sell their share to their fellow shareholders if they’re diagnosed with a critical illness.

To ensure your clients receive the right level of protection and to help ensure the policy is set up to meet the business’s needs, 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.

  • Pays a cash lump sum on death, or diagnosis of a specified critical illness, during the term
  • Covers 64 conditions including 44 full payment, and 20 additional payment conditions
  • Enhanced claim benefits for 16 full payment conditions
  • Children’s critical illness cover automatically included (for 62 of the 64 conditions), at no added cost
  • Level, increasing or decreasing cover
  • Guaranteed or reviewable premiums
  • Option to include Total Permanent Disability as a critical illness
  • Your client is only covered for the conditions and definitions listed in the policy conditions and no others
  • This product also provides cover for less severe conditions, these are called additional payments. If a claim is paid for an additional payment, the client’s full amount of cover remains in place. We’ll only pay one claim for each additional payment condition covered under the policy.
  • When a claim is paid for a full payment condition or if your client were to die, the policy would normally end (unless the customer has excess life cover over and above the amount of critical illness cover)
  • 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
  • This policy is not suitable for clients who want to protect their income should they be unable to work due to accident and sickness
  • There is no cash in value at any time
  • To make a claim, the person insured must survive for at least 14 days after being diagnosed (this doesn't apply to claims for children's cover)
  • If your client stops paying their premiums, their cover may cease
  • 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.
  • If your clients choose level cover, it won't keep up with inflation and could buy less in the future
  • The minimum term is 5 years and maximum term 40 years. The policy must end before the any person insured reaches the age of 70.
  • Clients can choose to take out a policy on an own life (written into trust) or life of another basis for either someone crucial to the firm’s profits, or one or more business owners. If your client is insuring someone else, they must meet these requirements.

To apply, the client must be:

  • Permanently living in the UK
  • Aged between 17 and 64 (for level and decreasing cover)
  • Aged between 17 and 59 (for inflation-linked cover)
  • Those looking for personal protection
  • Those wanting to provide a death in service benefits for employees
  • Those looking to cover a regular benefit if the person insured is unable to work for a period of time due to accident or sickness

Children’s Critical Illness Cover: is automatically included at no added cost for your client’s children for all of the listed critical illnesses (with the exception of Total Permanent Disability and Diabetes mellitus Type 1) from birth until age 21. Children’s cover only pays out on diagnosis of a critical illness; there is no survival period required for children and will not pay out if the child dies.

Additional Payments: This product also provides cover for 20 less severe conditions. These are included at no added cost, and conditions and limits apply. If a claim is paid for an additional payment, your client's full amount of cover remains in place. For more details, refer to the Policy Terms and Conditions.

Enhanced Payments: We will pay an enhanced claim amount on diagnosis of six specified neurological conditions, if your client is under 45 years old, and on ten full payment conditions if the claim is as a direct result of an accident. These are included at no added cost, and conditions and limits apply. For more details, refer to the Policy Terms and Conditions.

Total Permanent Disability: can be included, at an additional cost at outset as a critical illness condition. There are two types of cover; own occupation or work tasks, and the type we offer will depend on your client's occupation. Own occupation will cover your client if as a result of sickness or accident they are left unable to do the main aspects of their normal occupation and are never expected to be able to do so again. Work tasks will cover your client if as a result of sickness or accident they are left unable to carry out 3 of 6 specified work related tasks and are never expected to be able to do so again. For more details, refer to the Policy Terms and Conditions.

Guaranteed Increase Options: Your client can increase the amount of the cover for their employee, 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 of the employee at the time of change. For more details, refer to the Policy Terms and Conditions.

Member benefits: With this policy the insured person 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= Business Care: For all new policies (from 1 October 2015), we offer the policyholder (the business) telephone access to free specialist advice in business and commercial law, business tax and VAT. Provided at no added cost, these services are non-contractual and can be changed or removed at any time, and conditions apply. More details about LV= Business Care are available at LV.com.

LV= Doctor Services: For all new policies (from 1 September 2018), the person insured under the policy has access to a number of medical services and advice which can be accessed via one simple app or phone call, at no added cost. These include Remote GP, Second Opinion, Prescription 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.

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

LV= Doctor Services, LV= Business Care and Rehab Support Services are provided by third party companies. These services are not regulated by the Financial Conduct Authority or the 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.

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.

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.

  • 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.
  • The product does not pay out an actual cash amount, instead the client’s FPP premiums are waived
  • There is no cash in value at any time
  • 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:

  • 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.

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

There are no options or additional benefits.

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 about a particular disclosure.

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

Life Insurance underwriting 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

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*

Critical Illness

Total value of claims paid

£32.6m

£24.8m

Average annual benefit/payment

£56,659

£78,334

Highest annual benefit/payment

£675,000

£502,079

Policy in force duration

9 yrs 2 mths

6 yrs 8 mths

Ave. age customer at claim

Life*

Critical Illness

Male icon

Male

63

50

Female icon

Female

63

47

An icon of a man and lady

Youngest customer

24

25

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

Telephone icon

Contact us about Share Protection and Partnership Protection

Quotes and questions: 0800 678 1890

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