LV offers payment holiday to vulnerable clients

LV offers payment holiday to vulnerable clients

Protection provider LV is offering payment breaks to vulnerable customers who are financially struggling amid the Covid-19 outbreak. 

The insurer said the payment holiday would be funded through LV's own member support fund and would prioritise financial support for the most vulnerable customers experiencing "extreme distress" during the lockdown. 

The payment break is being offered one month at a time, for up to three months, and cover will remain fully in place for qualifying customers. 

Eligible customers will need to have a policy which has been in force for a year or more, a "good history' of premium payments, fewer than three months in arrears and must have suffered "significant drop" in their income. 

LV said it would be offering additional guidance to advisers and would keep them informed of any payment break options for clients.

Debbie Kennedy, director of protection at LV, said: "There is a strong link between financial and mental health and vulnerability, and introducing the option of a payment break during these particularly uncertain times means we can offer more support and reassurance when members are at their most vulnerable."

Ms Kennedy said navigating a pandemic was "certainly a challenge" for the protection market, but promised LV was doing "all it could" to look after its customers and advisers. 

She added: "With the payment break we’re able to prioritise additional financial support to those existing members that need it most and, importantly, keep their value protection cover in place." 

The provider said the payment break could help customers unable to pay premiums as a result of mental health struggles, bereavement, poor health or potential homelessness. 

Earlier this month experts urged advisers to be alert to the vulnerability of their clients, as the parameters of who classes as a vulnerable customer have shifted due to the pandemic.

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