LV= has launched its innovative Mortgage & Lifestyle Protection product, which is simple to apply for and can protect your mortgage payments and living expenses.
Mortgage & Lifestyle Protection is a flexible, tailored mortgage payment and living expenses protection product. It offers cover against accident, sickness and unemployment with level mortgage payment protection and the choice of level or index-linked living expenses protection all under one plan. Mortgage cover and living expenses cover can run to different terms, as your need for protection may not end when your mortgage does.
Chris McFarlane, Head of Protection at LV=, says, "Based on extensive research, we believe that people are looking for something that is flexible and simple to understand, that ensures they have all their financial commitments protected. The credit crunch is contributing to people's anxiety about the rising cost of living and how they would be able to cope financially if they were to fall ill, have an accident, or be made redundant. Our revolutionary Mortgage & Lifestyle Protection product is not only transparent, it can adjust to people's changing lives. While many people may think they are buying long term cover when they take out Mortgage Payment Protection Insurance (MPPI), the reality is that most current MPPI policies only pay out for a limited period, 12 or 24 months, which means they could stop when a customer needs it most. People cannot rely on the state to help them make ends meet, with the current incapacity benefit paying just £63.75 per week - not a lot to cover your mortgage and living expenses. We believe we can offer consumers peace of mind with our innovative protection solution."
The LV= Mortgage & Lifestyle Protection product offers the following features and benefits:
- A choice of Accident, Sickness and Unemployment or just Accident and Sickness cover
- Accident and sickness cover that pays out until you are able to go back to work, until the plan ends or you die(whichever is sooner), and is not limited to 12 or 24 months like most traditional MPPI policies.
- You can claim as many times as necessary on the accident and sickness cover, including for the same condition. After a claim the plan keeps on protecting you for the full term.
- The plan pays out if you cannot do your own job (not if you cannot do ‘any job' or any ‘suited job' as may be the case in many other income protection policies). This is the most realistic and most easily understood definition of incapacity.
This cover is available to employed and self employed people.
The plan can include up to 36 months' unemployment cover over its lifetime, with a maximum of 12 months at a time for any one claim. (Other policies in the market will only pay a maximum of 12 months.)
- This cover is available to employed and self employed people.
- Premiums are guaranteed for the term of the plan. There are no premium reviews or age banded increases, no matter how many claims you make. This gives you ongoing peace of mind knowing that premiums will never increase. In contrast, traditional MPPI is a reviewable contract, where premiums may be increased in the future.
- With Living Expenses Protection, you can also choose index-linking, which means that their premiums will be index-linked too. (In some other index-linked products, the premium increases more than the cover later in life, whereas the LV= premiums are guaranteed only ever to increase by the same rate as the cover. The index used is the Retail Price Index (RPI). This is a fairer and more transparent approach to any future premium and cover increases.)
- This plan has no cash-in value at any time.
- Waiver of premium is automatically included, so you do not have to worry about paying for cover when you cannot work or are receiving unemployment benefit under the plan.
- A free, confidential online health assessment check is available, offering personal advice on lifestyle, health and fitness.
Chris McFarlane adds: "Industry figures show that the majority of homeowners may have no protection for their mortgage payments or that the cover may be inadequate, which is concerning in the current economic climate. Our claims experience shows that the average length of an income protection claim is over six years, which is why our new product has been designed to pay out until the policyholder goes back to work or until the policy ends. This product is an all-encompassing long term disability cover to fully protect mortgage payments."
Income protection insurance: News update: June 2008