LV= has enhanced its existing income protection (IP) plan to tailor the benefits to better fit the specific needs of doctors and surgeons. The main changes are:
* Sick pay guarantee. Advisers can choose a 12 month deferred period, but LV= will pay out earlier for those doctors who have less than five years’ NHS service and so have not yet built up entitlement to full NHS sick pay benefits.
* £3,000 benefit guarantee. If the doctor’s income has fallen because they have changed jobs or roles, they will still be paid £3,000 a month or the full benefit if lower.
* Sabbatical cover. Allows doctors to take a sabbatical of up to two years and still get an own occupation disability definition cover, as though they were still working.
* Own occupation and competitive premiums. All doctors and surgeons get an own occ definition, with doctors aged under 36 getting Class 1 occupation rates, and those 36 or over getting Class 2. Surgeons get Class 3 rates, which could fall if they switch to an occupation with a lower risk in future.
The plan also includes significant career progression guaranteed insurability options, no HIV/AIDS exclusion and overseas cover if they move outside the UK in future. As part of the changes, LV= has produced an adviser guide to the changes.
What They Say
Head of protection Mark Jones said: “We appreciate the nature of certain jobs means that salary, position and place of work can quickly change, which makes it difficult to keep cover relevant. People have a right to get the cover they pay for, and these enhancements for doctors and surgeons make this not only a market-leading product for people in these professions, but further safeguards their income and ensures cover keeps pace with their changing needs.”
What We Say
"LV= has followed PruProtect by introducing IP changes specifically targeted at medical doctors. Its changes actually go further, including a range of benefits targeted at the profession. The IP risk for surgeons is greater than it is for other doctors, which is reflected in the occupation ratings chosen but overall the plan includes a number of features that should appeal to surgeons and other doctors.
"The industry’s move to gender neutral rates from 21 December should also help open up the benefits of IP to the UK’s 100,000+ female doctors, many of whom have previously voted with their feet not to pay significantly more for IP than their male counterparts do."