LV= is considering alternatives for its remaining occupations which have a list based definition of incapacity
The debate for supporting COVER’s and Angry Policyholders campaign to stop offering work task based policies has seen LV= cautiously back Cover’s IP campaign.
Mark Jones, head of protection at LV= sees the benefits of own occupation being offered to all policyholders, but he also sees potential issues with making policies affordable for all. We saw this argument early on in our campaign when insurers said it is better to offer something – no matter how bad – rather than nothing at all.
LV= has been working behind the scenes recently to look at how to move the vast majority of occupations to own occupation cover to add to its own-occupation only Income Protection product.
LV= agrees that own occupation is the easiest definition of incapacity for a consumer to claim on and it is straightforward and simple to understand.
Mr Jones told COVER: “We have seen examples of offsetting the initial cost of offering own occupation by reducing the benefit level over time during a claim, or increases in the cost of customer’s cover as they get older.
“Both allow a more affordable price at outset but introduce other potential issues later in the life of the contract.
“It is not a black and white issue, therefore we believe it is important that the campaign encourages providers to consider a range of alternatives that best suit consumers’ budgets and needs.”
He added: “I’m pleased to confirm that LV= support the Cover campaign to reform the assessment of claims using list based definitions.”