LV= life insurance
LV (Liverpool Victoria) is the biggest friendly society in UK. It has more than 1 million members. The company was founded in 1843 as a burial society and offers to its clients various savings, investments or insurance services. LV brand was decided to be used instead of Liverpool Victoria in 2007.
As for its insurance products, LV offers a possibility to choose from many of them: pet, car, travel, home, motor, small business as well as life cover. In its life insurance segment, LV offers such services as life insurance, life with critical illness, mortgage payment protection, over 50s insurance, income protection or will writing.
Liverpool Victoria life cover
Life cover pays out the sum assured in case the person dies or is diagnosed with a terminal illness. However, LV decreases the amount of money it pays out if the person claims because of a terminal illness. Currently, the amount of cover that will be paid out is lower by 3% than the one indicated in the insurance contract. It is also important to remember that the policy will pay out if the terminal illness is diagnosed before the last year of the term of the insurance. Moreover, it is important to remember that there is no cash in value.
The company offers two types of life cover: level or decreasing. The main difference is that with level cover the sum assured stays the same while for a decreasing one the amount of cover steadily decreases. For both of these options the premiums stays the same throughout the term of the insurance. However, if the person chooses the decreasing type of insurance the premiums he pays are lower compared to level insurance. The premiums start from £5 a month. It is also possible to take out a joint life insurance where both the person and his life partner are insured by the same policy contract.
Liverpool Victoria life with critical illness
Life with critical illness policy pays out in case the person is diagnosed with one of 48 specified covered illnesses. It also offers a partial payout in case of 7 additional illnesses. However, in partial payout case the policy continues and the person is still eligible to get a full payout if he is diagnosed with a critical illness from the LV’s list.
If the person chooses this type of cover he automatically gets a critical illness insurance for its children. Furthermore, it is possible to take out a joint policy and add waiver of premium benefit. Moreover, three types of cover are offered: inflation linked, decreasing or level.
If the level type of cover is chosen, then the amount of cover stays the same during all the term of the policy. Inflation linked type of cover is best suited for the people who does not want the value of the sum assured to decrease over time because of the inflation. The increase of cover each year is linked with RPI (Retail Price Index). The third type, decreasing cover is most suitable for those who have some financial obligations and primarily takes out an insurance policy because they want to protect their dependents from financial burdens to pay out these obligations.
Liverpool Victoria mortgage payment protection
The plan pays out a monthly benefit to cover loan or mortgage payments in case the person is unable to work because of an illness or injury. It is also possible to take out an unemployment cover alongside mortgage payment protection. However, unemployment cover is not available on its own. It is possible to choose from two types of it: level or inflation-linked. If the inflation linked cover is chosen the monthly benefit increases annually in line with RPI. The unemployment benefit can last maximum 12 months per one claim and for maximum 36 months during all term of policy.
Liverpool Victoria over 50s insurance
LV offers a guaranteed acceptance for UK residents aged between 50 and 80. It may seem as a very good service as there is no medical questions asked for the ones interested in getting LV’s over 50s insurance policy. However, the full cover is available only after one year has passed from the date the insurance contract has been underwritten. If the person dies within the first year of the cover his dependents will get back only the premiums that were paid. The maximum cover available is £25,000 and the premiums can vary from £5 to £50 a month.
Moreover, it is possible to add funeral benefit. If this benefit is chosen the sum assured increases by 10%. So, if the cover chosen is £20,000 then with funeral benefit it will increase to £22,000. Furthermore, it is also important to mention that when the person reaches an age of 90 years, he will no longer need to pay his premiums but the cover will continue. The full payout is available after one year. If the person dies within one year from the start on the policy only the premiums paid will be given to the dependents.
Liverpool Victoria income protection
With income protection it is possible to claim for maximum 55% of the monthly income. So if the person earns £2,000 a month he can claim for LV to pay him £1,100 every month. The policy pays out in case the person is unable to work because of an illness or an injury. The benefit is paid for a maximum 24 months per single claim. Moreover, the policy has no cash in value. Furthermore, it is possible to choose either level or inflation linked cover. With inflation linked cover, the maximum benefit each year increases in line with RPI while with level income protection it stays the same throughout all the term of the policy.