You are here: Home - Insurance - News -

LV= introduces premium reduction option for policyholders

Written by: Emma Lunn
Protection specialist LV= is introducing a premium reduction option for existing protection policyholders during the coronavirus pandemic.

Customers with income protection, critical illness, life insurance and business protection policies will be able to reduce their cover and premium amount for up to six months.

After six months, LV= will automatically revert the cover and premium back to the original amounts, without further underwriting.

The premium reduction option is available for protection policies that started before 1 March 2020.

The sum assured can be reduced by up to 75%, subject to applicable minimum monthly premium and minimum sum assured limits.

Policyholders can increase their premium and cover before the six month period elapses, or opt for the lower premiums and lower levels of cover to continue.

LV= says the feature is the latest measure the insurer has introduced to members with protection policies during the coronavirus outbreak.

Protection policyholders already have up to 60 days to repay a missed premium and different LV=policies offer in-built features, such as Unemployment Premium Payment Holidays.

In response to the rising effects of Covid-19, last month LV= introduced ‘payment break’ financial support for qualifying LV= protection policyholders.

Payment breaks, funded through the LV= Member Support Fund, are offered a month at a time, for up to three months and provides additional financial support for the most vulnerable members experiencing extreme distress.

While on a payment break the policy and cover remains in place in full. In the first month, LV= says it has arranged payment breaks for 87 of its members, 92% of whom are self-employed, with ‘waived’ premiums totalling £7,650 a month.

Debbie Kennedy, director of protection at LV=, says: “The coronavirus outbreak is affecting everyone differently – with heightened anxiety, fears for the future and money worries. That’s why we want to do all we can to provide our members with options to support them through this time and help them keep their valuable cover in place.

“We already offer a variety of support for members through built-in product features, cover options and the recent introduction of the payment break for our most vulnerable customers.

“While the payment break is intended for – and is already supporting – the most financially vulnerable LV= policyholders, we recognise that the financial impacts of COVID and lockdown are far reaching. Through our latest premium reduction option we can now offer more of our members some much needed financial relief, with the reassurance that some cover remains in place.”

LV= announced earlier this month that it would offer car insurance policyholders a partial refund if they were suffering financially due to coronavirus.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week