LV= Business protection
LV= has launched a range of business protection insurance plans providing cover against death and most critical illnesses. Three versions are available, covering key person, shareholder and partnership insurance plus loan protection. Plans are targeted at SMEs.
The plans offers sums insured that are level, increasing or decreasing. The CI benefits covered mirror those covered by LV= on its individual policies, and include free children’s cover (up to £25K). LV= covers 64 conditions – 44 full payment and 20 partial payment. One and a half times cover is payable for neurological illnesses and cover is doubled on certain accident related conditions. Total permanent disability can be added at extra cost.
Guaranteed increase options are available, with increases up to 50% of the original sum insured (max £250K) being new underwriting-free.
Marketing support includes easy to use calculators to help advisers calculate the potential value of client businesses, the amount of cover needed and how to split fairly the total cost of cover between the shareholders or partners. A series of business trusts, option agreements and support guides is also available. Customers get access to LV+ Business Care, which gives access to a 24/7 legal advice line.
Comment: Business protection has long been the poor relation of protection insurance, despite businesses generally having clear needs for protection. Partly that is because of the perceived complexity of both the need (and especially how much cover is needed and for whom) and the technical aspects of trusts, agreements and involving third parties such as lawyers.
LV= has done well to try to make that whole process as straightforward as possible, and the fact that the underlying cover mirrors its individual plans should help those familiar with its products too.
Overall if you need protection insurance or are looking to expand into this sector, LV= now has the tools available to help you do so.
Plus points: Business protection made as simple as possible; Underlying cover mirrors established individual plans; Good marketing support.
Not so plus points: Business protection is widely seen as too complex, with too many risks if anything goes wrong; Catch 22 – it is difficult unless you are experienced and unless you are experienced it can be a tough market to crack; Business protection takes potentially more time and involves more parties in more complex decisions.
Website: http://www.lv.com.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: Other; LV=