LV= has reported that show life insurance, critical illness and income protection claims caused by coronavirus totalled more than £19 million since the start of the coronavirus pandemic.
The insurer paid its first Covid-related claim on 16 March 2020 and since then has paid nearly 2,000 pandemic-related claims (up to 15 March 2022). This figure includes 1,400 death claims, totalling £18 million.
For Covid death claims, the youngest claimant was just 32 years old, with an average age of claimants of 64 years.
LV= has supported 550 Covid-related claims for policyholders with personal sick pay and income protection policies, paying out over £427,000. The top occupations to claim were nurses, care assistants, carpenters, warehouse and factory workers. LV= is supporting several income protection claimants through the effects of long-Covid.
More than 300 members have been supported through the LV= payment break option. Funded through the LV= Member Support Fund, payment breaks offered a month at a time, for up to three months, to members experiencing financial distress. Policyholders are still able to claim during a payment break, and there’s no requirement to repay missed premiums.
In April 2021, LV= was the first major insurer to remove any pandemic underwriting restrictions for protection insurance, against the backdrop of an improving death rate across the UK underpinned by the successful vaccination programme. LV= will offer life cover up to a 400% loading regardless of vaccination status.
Anna Rogers, head of underwriting and claims at LV=, said: “As we pass the second anniversary of the initial Covid-19 lockdown (23 March 2020), our claims experience demonstrates the far reaching impact the pandemic has had on our policyholders and families across the UK. Not only have people been affected directly by the virus, millions are still dealing with the impact of lockdowns, such as coping with isolation and financial worries.
“At LV=, we strongly believe that contemporary protection insurance is not only about paying claims; it’s about supporting customers from day one, when they are at their most vulnerable and providing emotional and practical support when they need it.”