LV= Income Protection

September 2019 LV=: IP


LV= has launched an optional 12-month claim period option on its existing Budget Income Protection product.

The main effect of this is lower premiums than plans with longer maximum benefit periods, while underwriting will be lighter too as the maximum risk to the insurer is now lower. Moreover, the new option still gives customers access to all existing LV= benefits such as parent and child cover and Doctor Services. LV= is targeting the option at budget conscious customers who want to protect their most valuable asset, which is their income.

LV= also points out  that, as with other benefit terms, the new 12-month option can be claimed on a number of times during the life of the plan, and that there are no standard exclusions.

The new option is available  with guaranteed premiums and can also be combined with other protection plans such as critical illness cover for an all-inclusive safety net, LV= says.

Comment: This is a really simple update – LV= has just added a 12 month payment option to its existing IP plan.

However, it’s more than that. A 12 month option gives lower premiums, lighter underwriting, fewer ratings and a generally simpler IP proposition. It makes a strong case too as a better alternative to the now toxic PPI product - timely in that the FOS has now drawn a line under PPI misselling complaints.

Overall, the new option offers advisers more choice and should help the plan appeal to a wider range of potential customers.   

Plus points: A simple new option – 12 month max benefit period; Could offer a much better alternative to traditional PPI cover; Lower premiums; Lighter underwriting as the risk is lower.

Not so plus points: Customers should not choose a 12 month option just because it’s cheaper, as the need to receive a benefit may go on longer; IP is still not as easy to buy as PPI was.


Rating (max 10): Overall: 8. Gold

Tags: IP; LV=

I Mark: No

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