LV= has announced changes to its income protection (IP) policies including a move to 100%‘own occupation' underwriting and improvements to cover for homemakers.
The changes will apply to all new IP policies from today and will see 325 occupations move from tasks definitions to own occupation cover.
LV= is also increasing the number of jobs for which it will provide IP to by 225.
The insurer has also simplified and improved cover for homemakers. If someone takes out homemaker cover they will now be able to make a claim against their policy if they are either unable to prepare a meal or do basic housework.
The level of cover a homemaker can take out has also increased from £1,250 a month to £1,500.
LV= has also enhanced cover for clients who become unemployed after their policy starts or take a career break.
As long as they continue to pay their premiums, clients will keep own occupation cover for the first year and throughout any claim made during this time. After twelve months, they will be offered homemaker cover.
The maximum age for LV='s IP policies has also been increased to 70 years old across all occupations.
Martin Sincup, income protection manager at LV= said: "We believe that products that protect an individual's income should be the cornerstone of any sound financial plan. We have decided to solely provide own occupation income protection cover as it is the best definition. Moving to own occupation cover makes it simpler for both clients and advisers to understand when we will pay out and easier for clients to claim on.
"Whether someone is single, in a relationship or has a family, if they are unable to work and earn an income most wouldn't be able to make ends meet for long. The changes we have made to our policy mean that a greater number of people will have access to extremely valuable cover that will pay out if they are unable to work for a long period of time due to accident or sickness."
