LV= is introducing ‘payment break’ financial support for qualifying existing members with LV= protection policies.
The payment break, funded through LV’s Member Support Fund, will prioritise additional financial support for the most vulnerable members experiencing extreme distress.
The provider says that specially trained staff are on hand to talk with members to understand their situation, signpost existing options and services available through their existing policy and LV= membership and then, where relevant, consider any payment break.
Payment breaks will be offered a month at a time, for up to three months.
While members are on a payment break their policy and cover will remain in place, in full. They are covered and still able to access services and make a claim on the usual way, in line with the terms and conditions of their policy.
To be eligible for the payment break, the member should have:
- a policy that’s been in force for 12 months or more
- a “good” history of premium payment
- less than three months arrears
- suffered a significant drop to their income, or their usual earnings have stopped.
LV= is offering additional guidance and support for advisers and will keep them informed of any payment break discussion outcomes for clients.
The payment break will be available to members who are unable to pay premiums due to a variety of factors including mental health issues, bereavement of a close family members, ill health or terminal illness, signs of being taken advantage by a third party or potential homelessness.
Debbie Kennedy, director of protection at LV=, said: “As a modern mutual, LV= believes that protection should be about more than simply making a payment when a member makes a claim. There is a strong link between financial and mental health and vulnerability, and introducing the option of a payment break during these particularly uncertain times means we can offer more support and reassurance when members are at their most vulnerable.
“Dealing with a pandemic is certainly a challenge for the protection market. Covid-19 means we’re constantly reviewing our current practices and procedures. We will do all we can to look after our members and financial advisers through these difficult times. With the payment break we’re able to prioritise additional financial support to those existing members that need it most and, importantly, keep their value protection cover in place.”