LV= upgrades its income protection plan

LV= has announced new upgrades to its income protection plan to support people living in rented accommodation.

The insurance company’s income protection plan for renters pays a monthly benefit to renters if they are unable to work due to illness or accident, which LV= suggested could be used to support rental payments, or day-to-day living expenses, to help ensure they stay in their home.

Approximately 4.5 million households live in the private rented sector, with people aged between 35 and 54 the largest group of renters, and more likely to be family units – 38% of renters have dependent children.

LV= said its income protection claims totalled £14.3m in 2018 – with the average monthly payment sitting at £1,221 a month, and the highest reaching more than £8,000. Mental health, cancer and musculoskeletal claims accounted for more than three-quarters of claims.

LV= director of protection, Debbie Kennedy, commented: “Millions of families live in rented accommodation and our research indicates that many worry about what would happen if injury or illness meant they couldn’t work and pay their rent.

“Dealing with a landlord is not the same as dealing with your bank or building society and in some cases, you can find yourself in a default situation far quicker than expected when renting.

“It is important that our protection plans meet customer needs and our rental proposition provides this flexibility of cover.”

Features of LV=’s income protection plan include a new guaranteed increase option, as well as parent and child cover with a lump sum payment of six times the monthly cover – up to £25,000 if a policyholder’s child is diagnosed with a specified condition – as well as an unemployment payment holiday.

Kennedy continued: “Policyholders can change their amount of cover easily if their rent increases, or if they move to a new property, and their cover moves with them without any further underwriting if they buy a house.

“Policyholders will also benefit from the LV= helpline that provides free legal advice to renters who have disputes with their landlord.”

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