LV has set out to improve its income protection product, increasing access for consumers and covering more eventualities.
The changes include introducing fracture cover, with payments up to £2,200 and a death benefit of £10,000. Both of these will now be automatically included as part of the contract, at no additional cost, and with no further underwriting or application forms.
LV has also added a premium payment holiday, which means customers will not need to pay their premiums for up to six months if they are made involuntarily unemployed or leave work to become a full-time carer.
This helps ensure customers can keep their cover in place and will also benefit advisers who will not lose commission because of a lapsed policy.
Another addition is a teachers sick pay guarantee to offer income protection payments for teachers who have sick pay arrangements that change depending on length of service.
Myles Rix, managing director of Protection at LV, said: “Taking out income protection is one of the best ways for consumers to improve their resilience to financial shocks and we recognise that in these current uncertain times our customers need protection against the widest range of possibilities.
"We’ve listened to advisers’ and consumers’ concerns and extended our cover so it protects against more eventualities. We believe the changes we’ve made will offer wider access, greater certainty and added value, and will appeal to advisers and their clients alike.”
The mutual is also increasing the maximum amount that customers can protect, so they can now cover up to a maximum of 60% of their earnings, and removing the minimum cease age.
LV income protection is available on LV Fastway – the insurer’s new quote and apply system – which makes the process as easy, and quick, as possible for advisers, ensuring more clients are protected sooner.
David Hollingworth, associate director of communications at broker London & Country Mortgages, said: "These changes represent improvements to the level of cover and demonstrates a desire to adapt policies to offer a more expansive level of cover.
"Adding extras such as fracture cover and death benefit will be useful add-ons. I think that offering clients that have been made unemployed the chance to maintain cover without payment of the monthly premium for up to six months is practical and valuable.
"Some of these additions offer real benefits. Although some may not be seen as crucial they are all certainly nice to have and can only help demonstrate the benefits of cover to a client."
