LV introduce 'simplified' sick pay insurance

Saturday 15 June 2013 09:13 EDT
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LV has become the first major insurer to offer simplified sick pay insurance.

The new product is specifically aimed at people aged 17 to 45 who are less likely to have chronic long-term illness requiring lots of time off work than older workers. Customers can choose a fixed amount of cover between £500 and £1,000 per month, and the insurance can be set up online in a few minutes.

Once someone has been unable to work for four weeks, sick pay insurance can pay out for up to a total of 12 months, and multiple claims can be made, even for the same condition.

"We insure our pets, home and even our mobile phones, but not the one thing that pays for everything else – our income," Mark Jones, head of protection at LV, said. "We are trying to raise awareness of the importance of people protecting their income, while giving them a very simple way of doing so."

Traditional income protection, on which the new sick pay product is based, is often criticised for being expensive and tailored to people with long-term, debilitating illnesses. In addition, it often has long periods when claims are barred and payout rates can vary wildly with some providers imposing strict conditions.

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