LV= has increased its maximum payout guarantee for income protection customers from £1,000 to £1,500 a month even if the customer’s income has fallen.
The provider’s IP customers can insure up to 55 per cent of their income before tax, or 55 per cent of net profit if the customer is self-employed. However, those who rely on commission or who work for themselves can experience fluctuations in their income. Insurers will normally look at the level of the customer’s income when they apply and will sometimes reduce the monthly payout if they feel the person is overinsured.
LV= will now guarantee a monthly payout of £1,500, no matter how much a customer’s income has fallen. If the customer selected less than £1,500 in the first place, the provider will guarantee the amount they have selected.
To qualify for the guarantee, customers must work at least 25 hours a week if they are employed or 16 hours a week if they are self-employed. It does not cover customers who decide to switch from full-time to part-time hours.
Furthermore, LV= has introduced a new guaranteed insurability option for customers whose salary has grown by at least 20 per cent since they took out the policy. These customers will be able to increase their annual cover by up to £20,000 once during the life of the policy without the need to go through further underwriting.
The provider already allows customers to increase their cover by half of the original amount, up to a maximum of £10,000, a year if they increase their mortgage, get married or have a child.