You are here: Home - Insurance - News -

LV= launches income protection for renters and self-employed

0
Written by: Emma Lunn
22/07/2021
The insurer now sells ‘Mortgage and Rent Cover’ for those with fluctuating incomes, as well as regular earners.

Research by LV= found that millions of mortgage holders and private renters are worried about money and feeling stressed and anxious.

However, a large proportion of renters, freelance workers and self-employed people don’t have an income protection product to provide an income if illness or injury leaves them unable to work.

Only 12% of mortgage holders and 5% of private renters say they have income protection, while 5.7 million (87%) of self-employed people, sole traders and gig workers don’t have income protection.

LV’s says its new income protection product, which is designed to help pay mortgage or rent payments, if illness or injury prevents the insured person from working, is “simple and affordable”.

Developed with feedback from financial advisers, LV= Mortgage and Rent Cover offers income protection with no minimum hours worked or proof of income required, either when applying or making a claim.

As part of the application process the adviser will need to validate that the cover amount does not exceed the customer’s mortgage or rent payments, and obtain documentary evidence from the customer to support this, such as a copy of their mortgage offer or tenancy agreement.

If the customer is unable to work due to an illness or injury, their rent or mortgage payments will be covered up to £2,000 a month for a maximum of one or two years per claim. The amount of cover can be adjusted by the customer during the lifespan of the policy to account for life events, such as moving house or rent increases.

Debbie Kennedy, protection director at LV=, said: “Working patterns have been transformed over the past 20 years and there are millions of freelance workers whose incomes fluctuate. Many would struggle to meet their mortgage or rental payments if illness or injury prevents them from working.

“LV= Mortgage and Rent Cover is the first product of its kind, focusing on under-served groups who are more prone to income shocks. It is designed to provide protection and peace of mind for people who worry about paying their mortgage or rent, if illness or injury stops them working.

“As millions of households opt to rent their homes and working patterns change, it is vital that protection providers adapt and innovate to suit the needs of advisers and their clients. We’ve stepped up, started from first principles and thought again about how income protection can best serve policyholders. With LV= Mortgage and Rent Cover, we can offer reassurance for consumers seeking to protect their mortgage and rent outgoings.”

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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week