LV formerly known as Liverpool Victoria was founded in 1843. It is now one of the largest friendly societies in UK. LV has more than 1 million members. The company offers variety of products from pet or travel insurance services to home or small business insurance products.
As for its life insurance segment, the most common is a standard life cover. However, it is not the only service provided by LV. It also gives a possibility to choose from such insurance policies as critical illness cover, mortgage payment protection, income protection, mortgage life insurance, over 50s insurance or even will writing.
This type of policy pays out in case the insured one dies or is diagnosed with a terminal illness before the last year the insurance policy contract is still valid. Moreover, if the payout is because of a terminal illness, it will be a 3% lower than if the person dies. One more disadvantage is that the policy has no cash in value.
The premiums for this type of the insurance start from only £5 a month, however there is no upper limit. Furthermore, the person can insure not only himself with one insurance policy but also his life partner with. Such a contract is better known as a joint life insurance.
It is also possible for the person to decide whether he wants his cover to stay the same throughout the duration of the policy (this type of cover is known as level cover) or to for the sum assured to steadily decrease over time (decreasing cover). The latter one is more often used in case the person chooses insurance services mainly to protect himself or his loved ones from various loans and other financial obligations. For both of these covers the premiums stay the same all the term of the insurance.
As the person can suffer from various illnesses such as cancer, Alzheimer’s and others, it is wise to consider insuring not only from death but also from critical illnesses. LV offers to pay out in case the person is diagnosed with one of 48 covered illnesses or a partial payout if one of 7 specified illnesses are suffered. Moreover, in case of partial pay out, the cover is not ceased and full protection from critical illnesses still takes place.
It is possible to choose three types of life with critical illness insurance: level, decreasing or inflation linked. If the level cover is chosen, the sum assured remains the same throughout the term of the insurance. If the decreasing one is chosen, the amount of cover decreases steadily until the end of the insurance policy. More interesting type is inflation linked insurance. If this option is selected, the sum assured increases each year in line with Retail Price Index. This way the person guarantees that the value of cover will not decrease over time.
Child critical illness cover is automatically added to the policy. The premium of waiver benefit can be also be added at additional amount of money added to the premiums. It is also possible to take out a joint policy.
LV also offers over 50s life insurance policy to its clients. The requirements to be eligible to take out this kind of insurance contract are very simple: to be between 50 and 80 and be residents in UK. There are no medical questions and no health check-ups. Thus, it is an attractive choice for those who would not qualify to get other types of life insurance policies or would have to pay high premiums.
However, with this type of policy the cover is smaller than usually. The maximum sum assured is £25,000. But it is possible to add funeral benefit which increases the cover by 10%. The premiums for this policy varies from £5 a month to £50 a month. Furthermore, if the person reaches his 90th birthday, he will not need to continue to pay the premiums and the policy will still continue.
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With this type of policy the person can insure himself from incapability to pay out his financial debts payments. If the person becomes unable to work because of an illness or if he suffers an injury then LV will pay his monthly obligations until he is capable to return to work.
Moreover, it is possible to add unemployment cover benefit. LV pays the benefit for a maximum amount of 12 months per one claim if the person becomes unemployed. For all the term of the policy it is possible to claim for a cover for a maximum amount of 36 months.
This type of policy pays out in case the person becomes incapable of working because of an illness or an injury. The maximum amount of time that LV pays the benefit per one claim is equal to 24 months. Thus, if the person is still incapable of working after this period of time he will need to find other sources of income.
Moreover, it is possible to choose from two options: level cover or inflation cover. With level cover the benefit stays the same. If the inflation linked type of policy is chosen then the cover increases annually in line with Retail Price Index.