Liverpool Victoria Financial Services Limited (LV=) has new income protection offerings.
LV= Mortgage and Rent Cover and LV= Executive Income Protection are now available for individuals and businesses, respectively. The first product can assist those with fluctuating incomes and irregular working patterns such as the self-employed, while the other policy is aimed at small businesses that typically cannot access group protection.
If illness or injury prevents the policyholder from working, LV= Mortgage and Rent Cover will help with the rent or mortgage payments for a maximum of one or two years per claim depending on the chosen coverage. The cover amount does not exceed the policyholder’s mortgage or rent payments.
When applying for the product, as well as when making a claim, there is no required minimum hours worked or proof of income. Additionally, the amount of cover can be adjusted during the policy’s lifespan to reflect changes such as rent hikes.
“Working patterns have been transformed over the past 20 years and there are millions of freelance workers whose incomes fluctuate,” said LV= protection director Debbie Kennedy. “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, focussing 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.”
Meanwhile, LV= Executive Income Protection covers the cost of providing monthly sick pay benefits to a key employee.
The insurer noted: “If an employee is unable to work due to illness or injury, the employer can make a claim, and uses the payments to provide sick pay to their employee (via PAYE) in place of their employee’s monthly salary. LV= will cover 80% of their earnings up to £300,000 a year for level cover and £225,000 a year for inflation-linked cover.”
Additional cover can be taken out for employer pension scheme and employer National Insurance contributions. There is also the option to transfer the policy to a worker’s new employer, subject to certain conditions.