LV= has added ‘payment break’ financial support for qualifying existing members with protection policies
LV= confirmed, on 3 April, that it was reviewing its ‘payment break' scheme for vulnerable customers, which launched as a pilot at the beginning of March.
On 22 April, the insurer confirmed the payment break has been rolled for its most vulnerable customers struggling financially during the coronavirus crisis.
While members are on a payment break their full policy and cover will remain in place, LV= said. They will also still be able to access services and make a claim in the usual way, in line with the terms and conditions of their policy.
To be eligible for the payment break, LV= said a member should have a policy that's been in force for 12 months or more, a good history of premium payment, less than three months arrears and suffered a significant drop to their income, or their usual earnings have stopped.
The payment break, which will be funded through LV's member support fund and prioritised for the most vulnerable, will be offered a month at a time, for up to three months.
The insurer has allocated designated staff to discuss specific financial situations with customers.
Debbie Kennedy, director of protection at LV=, said: "As a modern mutual, LV= believes that protection should be about more than simply making a payment when a member makes a claim. 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."
LV= has made a number of changes to its underwriting process in light of the coronavirus pandemic.
LV= has also teamed up with Square Health to trial virtual medical screenings and is also alternative medical evidence to avoid the need for medical screenings and GP reports.
Kennedy added: "Dealing with a pandemic is certainly a challenge for the protection market. COVID-19 means we're constantly reviewing our current practices and procedures. We will do all we can to look after our members and financial advisers through these difficult times. With the payment break we're able to prioritise additional financial support to those existing members that need it most and, importantly, keep their value protection cover in place."
Which life insurers are offering financial help during COVID-19?
Ruth Gilbert explores what the data is telling us
‘I am delighted to see the creation of the NoVAD campaign’
'The light at the end of the tunnel'