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LV= extends offer on unemployment cover

3rd July 2009 Print
LV= has again extended its offer to remove the initial 60 day unemployment claim exclusion for customers who replace their existing unemployment cover with LV='s innovative Mortgage & Lifestyle Protection cover. Usually LV= would not pay a claim for unemployment cover if the customer became unemployed within 60 days of their plan starting.

Whilst a number of other Mortgage Payment Protection Insurance (MPPI) providers are likely to come under the scrutiny of the FSA for reducing cover and increasing premiums, at a time when consumers are most likely to need the protection they've bought, LV= is now extending its offer by a further six months until the end of 2009.

At the same time, LV= is publishing its underwriting approach for unemployment cover, to help clarify, through a series of different scenarios, whether an application for unemployment cover would be accepted.

Chris McFarlane, LV= Head of Protection comments: "With the recession biting, we know that consumers may be increasingly concerned about their job security and that advisers need clarity and certainty around which products are suitable for their clients. Many advisers have already recognised that our five star Defaqto-rated Mortgage & Lifestyle Protection provides superior cover to traditional MPPI. As unemployment continues to rise, we are pleased to be able to extend the offer to give more customers and advisers the chance to benefit."

The Mortgage & Lifestyle Protection product offers financial advisers and their clients the following:

Protection for both mortgage and living expenses cover, if they need it;

Accident and sickness cover that pays out until the client gets better, no matter how long it takes up to the end of the policy term (most MPPI products limit payout to 12 months);

Optional unemployment cover paying out for up to 36 months over the lifetime of the plan, with a maximum of 12 months for any one claim (most MPPI products will only pay out for a maximum of 12 months in total);

The peace of mind of guaranteed premiums, together with guaranteed terms and conditions, and a contract that will not be cancelled by LV= (with most MPPI products, the insurer can increase the premiums, change the terms and conditions or even cancel the cover).

Under the extended special offer from LV=:

For policyholders replacing their existing unemployment cover, a claim for unemployment will be considered even if made within the first 60 days of taking out a new Mortgage & Lifestyle Protection plan (that includes the unemployment cover option).

Customers will be provided with up to the same monthly level of unemployment benefit that they had under their previous plan, or the level of cover provided on their Mortgage & Lifestyle Protection plan (if lower);

Chris McFarlane continues, "As the unemployment rate recently hit 7.2%, our market leading cover is more relevant than ever and can help advisers protect their clients in these difficult and uncertain times. By publishing our approach to underwriting unemployment cover, we are helping advisers choose the right solution and, in turn, giving customers greater confidence that their plan will pay out when it matters most."