Option to reduce their monthly premium by decreasing cover amount by up to 75% for a period of six months
Following the introduction of a ‘payment break' for customers, LV= has confirmed has introduced a premium and cover reduction for clients who may be struggling financially as a result of COVID-19.
The insurer told COVER that premium and cover reductions will not affect adviser commission, so won't trigger any clawback or change the indemnity period.
LV= said: "We already offer a variety of support for your clients through built in product features, cover options and the recent introduction of the payment break for our most vulnerable customers.
"We'll now also be offering your clients the option to reduce their monthly premium by decreasing their cover amount by up to 75% for a period of six months. We'll then automatically increase the amount of cover back to the original amount without the need for further underwriting. This is subject to minimum premium levels which means, the reduced amount of cover cannot [fall] below the minimum premium of £5 or under the minimum amount of cover where applicable (whichever premium is higher will apply)."
In order to help prevent customers from cancelling policies, LV= said the option will be introduced across all its personal and business protection products (excluding Pension Term, Sick Pay Insurance and Quick Cover).
It added: "Should your client wish to find out more about support they may be entitled to from LV=, please ask them to contact us directly, our specially trained people will talk with them to understand their individual situation and guide them through the options available."
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