About LV= (Liverpool Victoria)

LV= (Liverpool Victoria) is a mutual protection, savings and retirement provider, founded in 1843. It has 1.28 million customers – 1.25 million of which are members. LV=’s mission has always been the same: ‘to help people live more confident lives’. As of January 2020, LV= moved away from its friendly society status to become a company limited by guarantee.

LV= income protection policy features

If you buy your income protection policy through LV=, your policy is likely to come with the features outlined below. Here we'll explain what the feature is, what it means for you, and how it compares to other insurers on the market.

Back-to-work benefit If you become able to work while making an income protection claim, but can only go back part time (or to a different job with a lower salary), you’ll continue to receive a proportion of your income protection benefit. The idea is to make up for a potential income shortfall while you recover. LV=’s back-to-work benefit is in line with other insurers in the market. This is a handy benefit to have, as it gives you some flexibility and security as you make your return to work.
Rehabilitation Access to rehabilitation services to help you get back to work more quickly. This could include physiotherapy, counselling, or any other service/procedure that might help speed up your recovery. LV=’s rehabilitation benefit is good – in line with other insurers who offer this feature. Many insurers don't offer this feature at all.
Benefit guarantee Your income protection benefit will never fall below £1,500/month – as long as you bought at least that amount when you took out your policy. You normally need to be working a minimum number of hours to qualify for this benefit. LV=’s benefit guarantee on income protection policies is good. The amount is on par with other insurers who offer this benefit. Meanwhile, other insurers offer lower benefit guarantee amounts, or don’t offer the feature at all.
Death benefit If you die within four years of taking out your income protection policy, your family will receive a £5,000 lump sum. If you die after four years, they’ll receive a lump sum of £10,000. Some insurers don’t offer death benefit at all, so this is a good feature to have on your income protection policy – and the amount paid out by LV= is on par with other insurers who offer this feature.
Family carer benefit If your child falls seriously ill with one of the illnesses specified in your policy, you can claim a lump sum of 6x your monthly benefit straight away. Again, many insurers don’t offer family carer benefit, so this is a good feature to have on your income protection policy. The amount paid out by LV= is on par with other insurers who offer this feature.
Guaranteed insurability You’ll have the opportunity to increase your income protection cover after certain life changes. In an LV= policy, this includes:

  • Getting married or entering a civil partnership
  • Becoming a parent
  • Getting a significant pay rise
  • Taking out a new mortgage
  • Increasing your existing mortgage
 For the life changes it covers, LV=’s guaranteed insurability feature is good. It allows you to increase your cover by up to 50% (though as with other insurers, there's usually a cap placed on the total amount of cover you can increase to).

Some other insurers offer less flexible versions of this feature, don’t offer it for these life changes, or don’t offer it all. Meanwhile, there are some circumstances not covered by LV= that are covered by other insurers. Namely:

  • Changing the duration of your mortgage
  • Being able to review your cover amount at regular intervals
Waiver of premium This handy add-on means that you won't keep paying your monthly premiums if you're off work for medical reasons. You usually need to be off for a certain amount of time before you can claim this benefit. LV=’s waiver of premium benefit is in line with other insurers in the market. Having this benefit gives you peace of mind in case you can’t work for health reasons.

LV= income protection extra policy benefits

LV= income protection policies also come with extra benefits, outlined below. These features are what's known as ‘non-contractual’ – meaning they’re not related to the contractual conditions of your own policy, and can be provided by a third party. Everyone is eligible for them – though they’re usually only made available if you buy your LV= policy through an adviser.

Doctor services by Square Health This benefit gives you access to a number of expert medical services using the latest technology. This includes: up to five GP video consultations per year; private prescriptions; a second medical opinion; video consultations and bespoke treatment plans with a trained physiotherapist; up to five counselling or CBT sessions via video consultation; and 25% off health MOTs.
LV= Member Care helpline This helpline gives you unlimited access to a team of medical professionals for health advice and counselling services; and to qualified solicitors and legal executives for legal advice.

LV= income protection claim rate

In 2020, LV= paid out 95% of new and existing income protection claims, amounting to £14.6m. The most common reasons for claims were musculoskeletal problems (22%), cancer (18%), and mental health (15%).

Income protection claims not being paid out are usually due to not meeting the insurer’s definition of incapacity or misrepresentation (i.e. providing inaccurate information during the application process).

LV= income protection prices

The following prices are based on:

  • Healthy 25-year old male or female office worker
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £25 £31
26 weeks £21 £27
Short-term 13 weeks £10 £12
26 weeks £9 £11
  • Healthy 25-year old male or female plumber
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £44 £66
26 weeks £35 £52
Short-term 13 weeks £16 £22
26 weeks £13 £18
  • Healthy 35-year old male or female office worker
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £36 £44
26 weeks £32 £42
Short-term 13 weeks £14 £16
26 weeks £12 £15
  • Healthy 35-year old male or female plumber
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £62 £95
26 weeks £52 £91
Short-term 13 weeks £23 £31
26 weeks £20 £27

Long-term: LV= Income Protection
Short-term: LV= Income Protection Budget
Quoted on 06/03/2020

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Income protection: Anorak's complete guide What does income protection cover? Do I need income protection? Glossary of income protection terms
What is income protection?
An insurance policy that pays a monthly amount if you can't work for any medical reason. It's designed to replace part of your missing income, so you'll always be able to cover the essentials, even if lose your income because of an illness or injury.
What does income protection cover?
An income protection policy covers you if you're unable to work and lose your income for medical reasons. This includes any illness or injury, physical or mental, that leads to you being signed off work by a medical professional.
What doesn't income protection cover?
Income protection won't cover you if you're not working for anything other than a medical reason – like redundancy or resignation. You won't be able to claim on your income protection unless you're signed off work by a medical professional.
How much does income protection cost?
The cost of cover is different per person because it depends on how much cover you buy, how quickly you'd need the policy to start paying out, and how much of a risk you are to insure (based on your age, health and lifestyle).
Will my income protection pay out?
Yes, if you meet what's known as your insurer's 'definition of incapacity' – in other words, you meet their criteria for being unable to work. This definition is based, among other things, on the job you do, and you can read it before buying the policy.