LV= announces pipeline strategy

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LV= will switch its protection business to gender neutral rates on 1 December and has announced its pipeline strategy for advisers.

The provider's G-Day Guarantee will aim to ensure applications in the pipeline by 1 December can be processed on gender specific rates ahead of the 21 December deadline.

If an application has further medical evidence outstanding by 1 December LV= will ensure the business can still be placed on gender-specific rates in time.

The application will be underwritten based on the medical information provided by the client at application using normal underwriting standards before offering a premium and terms.

The application will be then put on-risk for the full cover applied for on gender specific rates to beat the 21 December deadline; medical evidence will then be sought as normal to be received within three months of the cover start date.

Mark Jones, head of protection at LV=, said: "Announcing how we will deal with our pipeline business means advisers can plan with confidence ahead of the gender directive. They can now be certain of securing gender specific rates for their clients if they want them, for applications received by LV= between now and 1 December.

"Given the expertise of our underwriters, we are confident fewer than 1% of policies put on-risk will need to be altered once we have received any further medical evidence retrospectively."

If medical evidence received is materially different to that given at application terms of the policy will be reviewed but cover will remain on gender-specific rates.

Policies will not be adjusted for small differences in medical disclosure.

LV= will not apply the G-Day Guarantee to female income protection business given premiums are set to decrease under gender neutral pricing.

David Hollingworth,associate director of communications at
London & Country Mortgages, said: "With G-Day fast approaching it's good to see a provider making a positive declaration of their approach to the impending deadline.

"Putting a clear line in the sand coupled with the assurances that the guarantee brings eradicates the uncertainty that currently prevails and will hopefully help provoke others to show their hand."

He added the clear message to clients remained that they need to take action now to review their options ahead fo the price hikes.

Advisers do not need to request that the LV= guarantee is applied to protection applications received before 1 December.

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