LV offers protection insurance payment holidays to those affected by coronavirus – and says they WON’T have to pay anything back
- LV will allow vulnerable policyholders 3-month payment breaks on protection
- Life cover, income protection and critical illness all covered under the scheme
- Policyholders will remain fully covered during the payment holiday period
- Customers won’t have to pay anything back once the period has ended
- Here’s how to help people impacted by Covid-19
LV has become the first insurer to offer payment holidays for protection insurance customers affected by coronavirus, meaning they won’t have to pay their premiums but still keep their cover.
The group will offer a break of up to three months for existing policyholders who have held their insurance with LV for a year or more and who have suffered a significant drop to their income, or seen their usual earnings stop completely as a result of the coronavirus crisis.
Payment breaks will be offered a month at a time, for up to three months, and policyholders will not need to pay back any unpaid premiums at a later date.
Cover is kept in full at the same level for the duration of the payment break, and customers will still able to access services and make a claim in the usual way.
LV’s life insurance, income protection and critical illness are all covered under the scheme
As things stand these breaks are only available to protection insurance customers and no such announcement has yet been made for general insurance, such as car or home insurance.
The payment break will be available to members who are unable to pay premiums for a variety of reasons including mental health issues, bereavement of a close family member, ill health or terminal illness, signs of being taken advantage by a third party or potential homelessness.
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.
‘With the payment break we’re able to prioritise additional financial support to those existing members who need it most and, importantly, keep their cover in place.’
The group has also increased non-medical limits by 10 per cent for income protection, personal sick pay and critical illness cover.
This means that the amount of cover policyholders can apply for before needing a doctor’s note will rise by 10 per cent.
If you’re an LV customer, make sure you talk to them before cancelling your payments – you will need to be approved for a payment holiday before stopping your payments.
Should you buy life cover online or use an adviser?
We often think of buying life cover online from price comparison sites because it’s possible to search the whole of the market and find the cheapest quote in a matter of minutes.
But it’s not necessarily the best idea to do this. You may not know how much you should be insuring yourself for and it’s unlikely that the quote will be tailored to your individual circumstances.
At This is Money, we do think it’s worth speaking to an adviser if you’re looking for protection, especially if you want more than simple life insurance.
That said, if you’re determined to go it alone there are plenty of options available.
You can buy cover online from a number of price comparison websites Compare the Market, Confused or Moneysupermarket offer a good range of products and will quote you based on averages. When you apply directly to the insurer, they will then provide you with a personal premium offer.
Alternatively, you can get a personalised quote online by answering some basic questions – This is Money has partnered with Cavendish Online to offer our readers exactly this option, for the cheapest price anywhere in the market.
You can complete the whole journey online or you can choose to chat to an adviser if you prefer, at any time.
Or you can find an independent financial adviser here.
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