LV= launches ‘personal sick pay,’ for clients whose jobs are “typically more expensive to insure”.
The new product also offers income protection cover for clients whose situation makes it more difficult to prove their earnings, such as those who are self-employed or regularly move jobs.
Personal sick pay provides ‘own occupation’ cover with a full or two year budget version available.
It has also been built in LV’s flexible protection plan, so it is available alongside critical illness and term insurance, the first time a product like this has been available in a menu.
The price a client 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.
Future prices are made available to advisers and their clients up front, with the option for either reviewable or guaranteed future price tables.
If a client 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 per cent of a client’s earnings before tax (or 60 per cent of net profit for the self-employed), for those who want more than £1,000 a month.
Clients 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 are off for three days in a row.
Richard Rowney, managing director of LV Life and Pensions, said: “Anyone can get sick or have an accident at any time, but the risks increase for clients 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.”
