"This extension until the end of 2021, with support up to mid-2022, is well-timed and can assist those who are self-employed or currently on furlough"
Initially launched to support LV= members facing financial difficulties, the payment break and premium and cover reduction supports policyholders unable to keep up with premiums due to the effects of the coronavirus pandemic.
Since April 2020, around 350 customers have benefited from either the payment break or the premium and cover reduction, with around 9 in 10 retaining their cover once the option ends.
Both options are available for qualifying existing members with LV= protection policies. Specially trained LV= staff are on hand to talk with members to understand their situation, signpost existing options and services available through their existing policy before considering any payment break or premium and cover reduction.
While members are on a payment break their policy and cover remains in place. They are covered and still able to access services and make a claim on the usual way, in line with the terms and conditions of their policy. Payment breaks are offered a month at a time, for up to six months with no requirement for premiums to be repaid.
The premium and cover reduction option allows members to reduce their monthly premium by decreasing their cover, for a period of six months. LV= then automatically increases the amount back to the original cover, without the need for further underwriting.
Eligible customers who start a payment break or premium and cover reduction option in December 2021 can receive support until June 2022.
Since March 2020, LV= paid over £12 million in coronavirus claims, assisting around 1,400 families.
Debbie Kennedy, protection director at LV=, said: “We were the first to introduce a payment break of this type, and have kept this and our premium reduction option under constant review throughout the pandemic, ensuring wherever possible, that policyholders have access to the support they need and are able to keep their valuable existing cover in place.
"This extension until the end of 2021, with support up to mid-2022, is well-timed and can assist those who are self-employed or currently on furlough, providing an additional safety net and peace of mind beyond the end of September when the Government schemes are set to end.”
