LV= is re-introducing day 1 and 1 week waiting periods for its specialist income protection offering, LV= Personal Sick Pay.
The provider withdrew short waiting period options to new business in March 2020 in response to the emerging and changing Covid-19 conditions.It has now re-entered this segment of the market and estimates that, compared to pre-Covid, around 75% of typical applicants who would usually apply will be able to secure financial protection that pays out sooner through a day 1 or 1 week waiting period.
Initially, LV= will still restrict day 1 and 1 week options for some clients; those who are self-employed will be offered 4-week waiting periods instead. Applicants in industries where their own job and income have been negatively affected will be assessed based on their individual circumstances.
LV= is also introducing a temporary Covid-19 exclusion for symptoms lasting under four weeks for all new Personal Sick Pay day one and week one applicants. It won’t pay a claim due to symptoms of complications of Covid-19 or other coronaviruses, respiratory tract infection, cold or flu if the policyholder is unable to work for less than four weeks.
It will, however, consider a claim – and backdate it – if the policyholder is off work for more serious symptoms that last beyond four weeks. Policyholders are able to claim for long-term illnesses caused by Covid-19.
Debbie Kennedy, protection director at LV=, said: “LV= is first provider to re-enter the market with this type of specialist cover helping to provide a valuable financial safety net for those who don’t have one.
“As we monitor the ever-changing situation and impacts of Covid-19 we must keep challenging everything we do. I’m delighted that we’re taking this first step. Through our pragmatic and targeted approach to reintroducing these short waiting period options, we’re able to offer more access and choice for advisers. I think advisers and customers will seek out providers who are prepared to be flexible and take into account the individual circumstances.”
The changes and provisions apply to new Personal Sick Pay policies only and LV= Income Protection plans remain unchanged.