New income protection policy, ‘Personal Sick Pay’ enables consumers with higher risk occupations or self-employed to insure their income
LV= has developed ‘Personal Sick Pay’ for policyholders who are more expensive to insure – like manual workers, tradespeople, teachers, nurses and drivers. This new product also offers income protection cover for customers whose situation makes it more difficult to prove their earnings, such as those who are self-employed or regularly move jobs.
Personal Sick Pay is based on the superior definition, ‘own occupation’ offers cover with a full or two year budget version. The new policy is underwritten under the same contract as LV=’s full income protection policy, but pays out for two years rather than until the policyholder returns to work. The price a customer pays each year is based on their age that year so will normally go up with age, and the cost is not affected by their job type, or whether they smoke with future prices made available to customers up front.
As long as someone normally works at least 30 hours a week they can have up to £1,000 a month insurance, with no financial checks at application or claim, regardless of any other income being received, such as sick pay, other insurance or state benefits. LV= will provide cover of up to 60% of a client’s earnings before tax (or 60% of net profit for the self-employed), for those who want more than £1,000 a month.
Policyholders can also choose ‘back to day one’ cover which means LV= will pay out from the first day they stopped working, as long as they’re off for three days in a row. This is a useful feature for consumers who wouldn’t receive sick pay, for example those who are self-employed or contract workers.
Richard Rowney, Managing Director of LV= Life and Pensions said: “As market leaders in income protection we wanted to provide a quality alternative solution in the ‘harder to insure’ space. Anyone can get sick or have an accident at any time, but the risks increase for customers in more physical or stressful jobs – so income protection can usually be expensive for them. We can now offer quality own occupation cover for a greater number of people at a much lower starting price through Personal Sick Pay.
“When designing this product we worked hard to ensure that, like our existing protection products, it is easy for customers to understand the level of cover they would receive, and how much they would be paying for it.”
The key points of LV=’s personal sick pay insurance include:
- Provides own occupation cover
- Full and budget versions available
- The price you pay each year is based on a your age and increases as you get older
- Premiums are not affected by a policyholders job or whether or not they smoke
- As long as a policyholder works at least 30 hours a week they can have up to £1000 a month insurance with no financial checks at application or claim
- LV= guarantees not to reduce this first £1000 if a policyholder receives any other income even sick pay or insurance
- Policyholders can insure up to 60% of their income with no deduction of state benefits
- ‘Day One’ option has a zero week deferred period for policyholders with no financial safety net as long as they’re off at least 3 days in a row
- Option for weekly claims payments
- Option for reviewable or guaranteed future prices table (age costed premiums)
- Shorter and jargon free literature
- Available on all the main portals
- Competitive pricing