LifeTime+ is LV=’s whole of life plan. It has now been enhanced by:
* Also now paying out on diagnosis of a terminal illness. On joint life second death plans, the sum insured is payable on the terminal illness of the second life, after the first life has died or been diagnosed as terminally ill.
* Increasing the number of guaranteed increase options from seven to ten. The ten are: marriage or civil partnership; receipt of an inheritance; childbirth or legal adoption of a child; mortgage increase (new home or home improvement); divorce/dissolution; change in legislation governing inheritance or Inheritance Tax rates; salary increase (more than 10%); retirement/death in service replacement; increase in IHT liability; business protection increase. The amount available depends on the type of increase.
The plan is available to UK residents aged between 17 and 84 and pays out a lump sum of at least £10,000 (there is no maximum). Cover is fixed and premiums guaranteed throughout life. Premiums cease at age 100. Waiver of premium benefit can be added (with a deferred period choice of 1, 2, 3 or 6 months and the option to run beyond age 70).
There is no option to increase the sum insured (other than through the guaranteed insurability options), with all other increases being subject to fresh underwriting.
Cover can be single life or joint life (payable on first or second death).
A range of trusts is available and there is a useful online Trustbuilder Tool to help decide on the right type of trust and to complete it online.
There is no surrender value at any time.
What They Say
Head of protection Mark Jones said: “Our product can be used by those who want to fund all or part of the tax liability that may be payable on their death, or want protection that will pay out whenever they die.”
What We Say
"The success of guaranteed acceptance (funeral) plans in recent years shows there is still a market for simple, permanent life cover. However, such plans can be relatively expensive.
"The alternative of a plan fully underwritten upfront may not appeal to someone with health issues, but is well worth considering, as even a rated plan may be cheaper than a guaranteed acceptance plan, and it will offer much higher sums insured too.
"The other main market for this plan will be for Inheritance Tax planning or to leave a legacy. In all cases, writing the plan in trust is likely to make sense, and LV=’s online guide to doing that takes a lot of the uncertainty out of such decisions. We like the idea of alternative deferred periods for WOP (the industry standard of six months is too long for many people), while paying out on terminal illness is a good step, and premiums ceasing at age 100 is better than nothing – although an option to limit to age 85 or 90 would be even better."