LV= has extended its life and critical illness (CI) insurance to cover a total of 87 conditions.
The number of full payment conditions – including brain injury due to trauma, anoxia or hypoxia, Crohn’s disease, severe mental health and severe sepsis – has increased from 44 to 49.
For cancer, the most claimed for condition, LV= has introduced a new £1,000 payment for policyholders, or any child covered by the policy, if they are diagnosed with one of the listed cancer conditions and evidence of diagnosis is provided.
The payment would be made before a claim is fully reviewed by an assessor, would not reduce the amount of cover and is designed to help with additional costs of being diagnosed with cancer.
Cover is now available up to a 50-year term up to age 80.
LV= has simplified the amount paid for enhanced payments to pay twice the amount of cover up to an additional £200,000, increased the age of diagnosis to 55 for neurological enhanced payment conditions, and introduced three organ-related enhanced payments: major organ transplant, liver failure and severe lung disease.
Extended children’s cover is standard up to age 23 for 85 conditions and no minimum survival period. It pays out 50% of main policy cover, up to £25,000 per policy, plus enhanced payments for 13 conditions through either accident or organ-related payments (up to £50,000).
There is a new £5,000 child’s funeral payment and new “junior option”, allowing a child to take out their own CI cover within six months of their 23rd birthday without medical underwriting.
Debbie Kennedy, director of protection at LV=, claimed the provider now offers unrivalled comprehensive all-round support for advisers’ clients and their families.
“Our cancer diagnosis payment can ease the financial worries and through our expert partners, including second opinion and our working relationship with Maggie’s, we can offer the reassuring practical and caring support for the family,” she said. “We’ve taken a long hard look at our critical illness policy to make sure it can really protect modern families – including more conditions, children’s cover to age 23, access to emotional health support for young adults and our junior option – which allows adult children to easily secure valuable protection for themselves.”
“The resurgence of LV= is a welcome start to 2020”Alan Lakey, CIExpert
Alan Lakey, of CIExpert, said the improvements have been well thought-out as they focus on important conditions and appropriate upgrades.
“Overall the changes made by LV= reintroduceAdam Higgs, Protection Guru
them as a serious player in the
comprehensive end of the critical illness market”
“As with most plans there is still room for greater clarity so that the potential for confusion is reduced, nonetheless the resurgence of LV= is a welcome start to 2020,” he added.
However, Adam Higgs, head of research at Protection Guru, argued that although consolidating conditions into simpler and clearer definitions is a positive approach in the main, categorising Aplastic Anaemia into the main cancer definition is medically incorrect and reduces the clarity of the definition.
“We would encourage LV= to rethink this decision in future changes,” he said. “This aside, the consolidation of the conditions do not reduce the likelihood of a client being able to claim and overall the changes made by LV= reintroduce them as a serious player in the comprehensive end of the critical illness market.”