LV= has revealed that it paid out over £309,000 for a single income protection claim lasting more than 35 years.
The claim – the longest lasting of LV= income protection claims – is being paid to a woman who was unable to return to work since 1987. She was diagnosed with epilepsy in her twenties after suffering from a brain haemorrhage.
She was 27 when this life-changing event occurred and the income protection policy had only been in place for 16 months. She will continue to receive pay-outs from LV= until 2023, when the policy term ends.
The latest edition of the LV= Fuel for Life report highlights the support available for financial advisers, demonstrating how protection policies help households overcome financial shocks.
LV= paid over £9.4 million in income protection claims between January and July 2021, supporting over 1,500 policyholders aged between 23 and 64.
For FPP Income Protection (IP) claims, cancer, mental health, and musculoskeletal conditions were the top three causes of claim. The average age of IP claimants was 46 years and the average monthly claim benefit was £1,500.
For Personal Sick Pay (PSP), developed for those in higher-risk, more expensive to insure occupations, the most common causes of claim were musculoskeletal conditions, fractures and covid-19. The average age of PSP claimants was 41 and the average monthly claim benefit reached £865.
LV= has experienced a number of fracture cover claims, paying out £14,300 so far in 2021
Justin Harper, proposition and marketing director at LV=, said: “This claim lasting 35 years just goes to show the true power of income protection. Not only does it demonstrate that life changing injuries and conditions can strike at any age, but they can be long lasting too. Credit must go to the adviser who talked to their client about protecting their income and for putting index-linked cover in place. The claim started out at £93 a week and has risen nearly threefold over time, to a current weekly payout of over £270.
“Financial and practical support can make a positive difference in times of hardship and reinforces again the real value of sound financial advice. I hope stories like these can offer advisers more encouragement and confidence to talk to new and existing clients about their protection needs.
“As part of our #IPAW (Income Protection Awareness Week) pledge, we are running more protection ‘refreshinars’. I’m amazed that over 12,000 have attended our virtual events this year alone. All qualify for CPD and adviser feedback suggests the sessions are informative and can make a positive practical difference.”
