LV= extends income protection offer

by Gill Montia

Story link: LV= extends income protection offer

LV= has extended its offer to remove the normal 60 day exclusion clause for new customers switching their existing unemployment cover.

The offer now extends to 31 December 2009 for those signing up to LV=’s Mortgage & Lifestyle Protection product.

The friendly society is making a stand against a trend for insurers to increase premiums or reduce cover on unemployment policies and has backed the move by publishing its underwriting approach, which it says will improve clarity and transparency for advisers and clients alike.

LV=’s Mortgage & Lifestyle Protection policy can provide protection for both mortgage and living expenses and offers accident and sickness cover that pays out until the client gets better, or up to the end of the policy term.

Optional unemployment cover paying out for up to 36 months over the lifetime of the plan (with a maximum of 12 months for any one claim) is also available.

Last month, Financial Services Authority head, Lord Turner, warned insurers that they could expect to hear from the regulator if they increased premiums or reduced cover for existing income protection customers during the recession.

Firms were told that this is an area where they must expect FSA intervention to address “poor consumer outcomes”.