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LV= improves Mortgage and Lifestyle Protection

21st June 2010 Print

Protection specialist LV= has announced improved flexibility and lower pricing for its Defaqto 5 Star rated Mortgage & Lifestyle Protection (MLP) product, developed as a superior alternative to traditional accident, sickness and unemployment cover.

The new changes to MLP come as a direct result of adviser feedback, asking for greater flexibility in matching cover to clients' sick pay and redundancy arrangements, and a new approach to pricing.

Mark Jones, LV= head of protection, believes the new changes clearly demonstrate the value of LV='s relationships with advisers, and how the firm is continually striving to make advisers' lives easier:

"The feedback we've had from advisers is that they love the product, but that two things were holding them back from selling as much as they'd like to."

"The first was that they wanted different waiting periods for accident and sickness cover and unemployment cover. Typically they might have a client with six months sick pay, but little or no redundancy entitlement or savings. Previously the unemployment cover had to have the same waiting period as the accident and sickness. Now, they can be different."

"It's a simple change, but it will make it much easier for advisers to match cover to clients needs. There's also the added bonus of more flexibility to play around with the required cover, if budget is an issue."

"The second was about price. We've now simplified our approach to unemployment cover, with a new low rate band for those in lower risk occupations. We're offering a high quality product at a really competitive price, and unlike many types of traditional ASU products, our premiums are guaranteed, even for unemployment cover."

LV= has also introduced a ‘Mortgage Guarantee' to its MLP cover, that is designed to help those who are self employed or whose income relies heavily on commission and bonuses.  If a client needs to claim and can't provide proof of earnings that support their level of cover, we'll use their average regular monthly mortgage payments over the previous 12 months.

Mortgage & Lifestyle Protection was designed to offer people simplified, long term, good value cover, addressing many issues with traditional accident, sickness and unemployment products.

Matt Morris, senior policy adviser at LifeSearch, comments on the improvements made to MLP "LV='s Mortgage & Lifestyle Protection is a quality product and leads the way in the MPPI market. These improvements give the adviser more flexibility and make it easier to write business.  LV= has listened to advisers and improved an already impressive product to make it even more valuable."

Mark Jones feels the product and pricing revamp comes at the perfect time for advisers looking to provide better cover to new and existing clients.

"The cover really is in a different league to traditional MPPI or accident, sickness and unemployment products. It's all about cover that you can have faith in, with no nasty surprises. We cannot move the goalposts and change the contract once you've taken it out. We underwrite clients upfront, so they can be confident in making a successful claim if needed, and if they do claim for ill health, we'll pay out until they get better, not just for 12 months. We pay if people can't do their own job, not any job they're "suited to", giving customers the cover they really want."

"These simple but valuable changes provide extra peace of mind for clients, and make it easier for advisers to recommend this type of cover - particularly to the self employed."

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