Protection provider LV has reintroduced day one and one-week waiting periods for its income protection product, ‘Personal Sick Pay’.
The change means policyholders will have to wait one day or one week after three consecutive days of being unable to work due to illness, before they can claim.
However, self-employed clients are currently not able to take out a policy with a day one or one-week waiting period.
Additionally, applicants in industries where their job and income have been negatively affected will be assessed based on their individual circumstances.
LV had withdrawn the short waiting period options to new business in March, which it said was in response to the emerging and changing coronavirus conditions.
Debbie Kennedy, protection director at LV, said: “As we monitor the ever-changing situation and impacts of Covid-19 we must keep challenging everything we do. I’m delighted that we’re taking this first step.
“Through our pragmatic and targeted approach to reintroducing these short waiting period options, we’re able to offer more access and choice for advisers.”
For all new personal sick pay day one and week one applicants, the provider is introducing a temporary coronavirus exclusion for symptoms lasting under four weeks.
According to LV, it will not pay a claim due to Covid-19 or other coronaviruses, respiratory tract infection, cold or flu if the policyholder is unable to work for less than four weeks.
However, it will consider and backdate a claim if the policyholder is off work for more serious symptoms lasting beyond four weeks.
Additionally, policyholders are able to claim for long-term illnesses caused by Covid-19.
Paul Reed, director at Vita, commented: “The changes made by LV are a huge stride in getting a ‘hint’ of normality back into the income protection market. More clients will be able to get the financial support they need, when they need it most without having to wait the longer waiting periods previously enforced.
“It’s important to note that income protection covers so much more than Covid, so the temporary exclusion on the policy shouldn’t be seen as a negative, rather a realistic common sense stance in the current environment in which we live.”
The personal sick pay product is aimed at clients in riskier jobs who can be more expensive to insure, such as tradespeople, nurses, electricians and construction workers, according to LV.
chloe.cheung@ft.com
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