LV= Income Showcase Page
Protection Guru has worked with LV= to create a concise objective analysis of their product range.
LV= in their own words
“At LV=, we understand that all individuals and families are unique, facing multiple changes, challenges and risks in their lifetime. Throughout this journey, your client’s income is their biggest asset and protecting it should form the foundation of any financial plan.
That’s why with LV= you can protect your client’s income and support their family through illness, death and everyday life. Our comprehensive plan offers quality cover for the whole family, protecting them financially. It also offers additional services to support them emotionally and practically in the moments that matter. Every client is different, that’s why we include flexible options, allowing you to tailor the plan to their protection needs, budget and lifestyle as well as adapt their cover throughout their life.
We have a strong heritage of IP expertise, a track record of innovation and are considered by many as leaders in the IP market. To help advisers help their clients, we offer an extensive range of income protection solutions, options and benefits for all.
- Traditional and specialist Income Protection: Personal Sick Pay is our specialist Income Protection designed for higher risk workers and those in occupations more difficult or expensive to insure. We’re the only provider to offer both within one menu.
- Unique features and benefits to support specific clients groups: including medical professionals, teachers, renters and the self-employed – as standard and at no extra cost.
- High maximum benefit levels: we cover 60% of gross income up to £250,000 for Income Protection making us a stand out provider for high net worth clients. And, we have benefit guarantees automatically included.
- Emotional and practical support from day one: with LV= Doctor Services and LV= member benefits.
- Early intervention: we recognise that a claim might have immediate and longer term work, lifestyle and family implications. We can help with early intervention, back to work support and treatment strategies to help people get their lives back on track.”
A couple in their 30’s have:
risk of either of them not being able to work for 2 months¹
risk of death¹
This would cause a huge financial strain. Especially when you consider that 73% of 30-35 year olds don’t have, or don’t know if they have 3 months of outgoings in savings.²
¹LV= Risk Reality Calculator: based on a male and female, both aged 35, non-smokers, retiring at 65.
²LV= Income Roulette Research 2018
Ensuring continuity of income in life and death
LV= enable you to build a flexible plan to protect income when your client needs it if they’re unable to work, and when their family needs it to help pay the monthly bills should they pass away.
LV=’s Family Income Benefit offers simple and affordable life cover and alongside the various Income Protection solutions, can form part of a Flexible Protection Plan. This enables advisers to protect the income of their client and family throughout their life journey.
Options for many different client profiles
Roll your mouse over or touch an image to find out more
Teachers Sick Pay Matching
For school teachers, advisers can select a 12 month deferred period and LV= will automatically match their sick pay scheme (only available on income protection).
NHS Sick Pay Matching
For doctors, surgeons and dentists, advisers can select a 12 month deferred period and LV= will automatically match the NHS sick pay scheme (only available on income protection).
Parent & Child Cover
This feature unique to LV=, provides pays a lump sum if the life assured’s child is diagnosed with a specific illness or undergoes a specific operation. This covers 54 conditions in total (only available on income protection).
Personal Sick Pay is aimed at those working in higher risk occupations who can be more expensive to insure, such as tradespeople, nurses, electricians and construction workers.
Low Cost Options
As well as full term benefit periods, LV= offer a choice of short term benefit period options including 12 or 24 month benefit periods for income protection and 24 month benefit period for Personal Sick Pay.
Protecting income in life & death
The bills don’t stop; advisers can add FIB alongside IP, to ensure ongoing income after parent or partner passes away.
More income protection solutions
As well and their flagship, award-winning IP, LV= offer a range of other income protection solutions to allow you to tailor your advice and cover offered to your client’s unique needs.
Mortgage and Rent Cover is an outgoings based protection solution that protects your clients monthly mortgage or rental payments. It can help you protect more clients where traditional income protection wouldn’t always be suitable.
- It’s ideal for clients with irregular earnings who may struggle to prove their income or hours worked.
- It’s also a great option for your clients who are just starting out and getting on, or trying to get on the property ladder.
- No proof of income or hours worked is needed. You’ll only need to validate the amount of cover isn’t more than your clients mortgage or rental payment by obtaining documentary evidence (such as mortgage offer or rental agreement).
- Their Mortgage and Rent Guarantee means they’ll pay the full chosen amount of cover throughout the claim when your client is unable to work due to illness or injury.
- Through LV= Doctor Services and their Member Care Line they can provide quick, convenient access to a range of everyday emotional and practical support services.
LV= believe everyone should have peace of mind over their income, regardless of their occupation. Some clients in riskier jobs – like tradespeople, nurses and electricians – can be more expensive to insure, and need tailored cover. Personal Sick Pay offers specialist income protection aimed specifically to these clients. It’s built with a number of features with them in mind:
- Age costed premiums.
- Cover for up to 60% of earnings with weekly or monthly payments.
- Personal Sick Pay £1,000 guarantee.
- Own occupation definition of sickness.
- Waiver of premium option.
- Part of the Flexible Protection Plan menu.
- Different waiting period options to suit your client, from day 1 through to 1, 4, 8, 13, 26 or 52 weeks.
Through LV= Executive Income Protection you can help provide business owners and their people with financial security and valuable everyday support. Designed with smaller businesses in mind, the policy can help cover the cost of providing sick pay to employees.
- Available as part of the LV= Business Protection menu plan.
- Usually classed as a tax-deductible expense for the employer and it can be more tax efficient than personal income protection for the employee.
- LV= will cover 80% of the insured person’s combined earnings, up to a maximum cover amount of £300,000 a year. The policy can also cover employer pension scheme and National Insurance Contributions.
- LV= provide valuable benefits for the employer through LV= Business Care and everyday emotional and practical support for the employee through LV= Doctor Services.
Tools to support your client conversations
- Risk Reality Calculator provides a personalised report showing the likelihood of income shocks, serious illness and death, so you can talk your client through the real risks they face, creating the need for a menu of protection. (Click here)
- Income Shortfall Calculator shows how much income your client could lose if they were unable to work and how much of it you could protect with LV= Income Protection. (Click here)
- Budget planners to capture your client’s outgoings and compare them to the current state benefits they could receive to help you handle objections. (Click here)
Helping get policies on risk
- Pre-underwriting tool allowing you to check pre-existing conditions so you can immediately see if they’ll impact your client’s policy terms. This 24/7 online tool can help you manage your client’s expectations from the start, and can aid your recommendations. (Click here)
- Fastway, LV=’s quote and apply tool provides an online application journey allowing you to submit an application for any of LV=’s products in the Flexible Protection Plan.
- LV= Protection Hub to help you track the status of your applications submitted through Fastway. (Click here)
Claims Statistics 2021
LV= claims statistics highlight the different client profiles suited for their income protection and Personal Sick Pay propositions. As can be seen from the most common cause of claims, the majority of claims for Income Protection are for conditions that may have longer term symptoms whereas a large proportion of claims for Personal Sick Pay are for conditions where symptoms may not be expected to last as long. This reflects the shorter deferred period options within Personal Sick Pay.
LV= paid 93% of income protection caims in 2021
(including in payment claims)
Personal Sick Pay
Total value of claims paid
Top cause of claims
Mental health (15%)
Mental health (4%)
The main claim statistics tell part of the story, however there are many other benefits within Income Protection plans that clients can claim on. Whilst some of these may provide a financial benefit, others provide something more personal by supporting the client either physically or mentally at their time of need.
Paid in fracture cover claims in 2021
Paid in death benefits in 2021
Clients supported with their recovery through rehab services in 2021
Calls made to the Member Care Line in 2021
LV=’s Green Heart initiative provides gestures of support when it’s needed the most but expected the least. This includes hampers, vouchers, children’s gifts and financial support to cover hospital parking, flowers and more. Their claim team embrace Green Heart Support and make it part of their everyday, recognising when they can step in and make someone’s day just a little brighter.
“For weeks, I have been trying to compose a letter of thanks to your team. I am afraid that I am rather slow these days you see. Usually, I do not have a problem with words. This time I did. Firstly, I was ashamed that I had to ask for support. So ashamed. Since being diagnosed with Parkinson’s Plus Syndrome, my world has shrunk in so many ways. I also know only too well what my condition entails and what lays ahead of me. I cannot pretend either, that the pain I suffer, together with other aspects of my condition, have not given me some very dark days. I did not want to go on. Your gift to me, helps not just me, but the whole of my small family. As looking after someone in my condition is a huge burden. Your support has been life-enhancing. When I was given the news over the telephone that I was to receive your support; I must admit that I broke down. I was in a dark place, with no light at the end of the tunnel. Your telephone call. Your support. Your gift to me is life-changing. A mere “Thank you” cannot convey what your support team has achieved for one human being. You have saved my life.”
“In a time when our world came crashing down with my wife’s cancer diagnosis and we had plans made for our life, it all changed in every sense. I was already in an IVA and my wife was caring for her mother and couldn’t any longer. We were financially in trouble so was going through my policies to see if there was any help in a time of need! LV=, we can never thank you enough for at the hardest time you allocated some funds which have been a tremendous help for fuel to hospital, heating and essentials. My wife, daughter and I are truly thankful and glad we are with you. I urge people that all is not lost and there is help out there.“
Areas for improvement
- Currently do not offer family income benefit with critical illness
- The minimum benefit guarantee requires the client to be working a minimum of 25 hours per week (30 hours for Personal Sick Pay) if employed. This is relatively high with many others only requiring 16-20 hours worked per week.
- Will only waive the deferred period if the client is unable to work due to the same condition up to six months after the client has returned to work. Many other insurers extend this to 12 months.
Protection Guru has worked with LV= to create a concise objective analysis of their product range. LV= have had input to the design of this page and contributed to the cost of this construction maintenance, however Protection Guru have maintained editorial control over the content to ensure objectivity.