LV life insurance [2020]

Liverpool Victoria, commonly referred to as LV, is one of the UK’s leading financial service providers with over 5.8 million customers.

They operate within the personal insurance sector, offering different types of cover including home, car and travel insurance.

LV= logo

LV also offers life insurance and their policies are available through us here at Reassured.

Let’s review LV's life insurance offerings to see whether or not it's the right cover for you.

LV policy types

LV offers two types of life insurance; level term and decreasing term.

Both of these policy types run for a set period of time (or term) and if you were to pass away during this, a cash lump sum will be issued to your loved ones.

The key difference between the level and decreasing policies is the pay out sum.

The sum assured from level term cover holds its value throughout the policy, meaning that if you were to die 2 or 20 years into the policy, your loved ones will receive the same amount.

With decreasing term life insurance, however, the sum assured decreases over time. Meaning that the later into the policy you die, the lesser amount your loved ones will receive.

This tends to be the cheaper option of the two and is designed to cover the balance of a repayment mortgage.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.

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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.

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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

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Your total cover estimate

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Let us find your best quote.

Single vs joint policy

Both LV life insurance policy types are available as single or joint policies.

Generally speaking, you can save around -25% when taking out a joint policy as opposed to two singles.

However, a joint policy will only pay out once, meaning that when the first partner dies, a pay out is made but the surviving partner is left unprotected.

This will require them to take out a new policy at an older age, at which point they're likely to experience an increase in premiums.

Equally, if your policy is intended to protect your dependants and both you and your partner die simultaneously, only one pay out will be made.

This sum assured may not be significant enough to cover the cost of losing both parents.

Therefore, it's important to consider whether or not a joint policy would offer the level of protection you require.

LV policy criteria

Like most insurers, LV have certain age criteria you must meet in order to be eligible for cover with them.

LV accept life insurance applications from anyone aged between 17 and 79 years.

This is younger than most insurers which won’t accept applications unless you're aged 18 or over.

For both level term and decreasing term policies, they offer a term length of 5 - 54 years. This will be determined by what it is you're looking to protect.

The term you choose must cease before your 85th birthday if not, it'll be declined.

LV policy details

Life insurance with LV starts from £5 a month, depending on your personal circumstances, and includes terminal illness cover as standard.

This means that if you were diagnosed with a terminal illness and given less than 12 months to live, you'll receive an early pay out.

These funds could help you pay for expensive medical treatment, adapt your home or simply enjoy your time with friends and family.

Premiums are fixed with all LV policies meaning that you'll not experience an increase in the monthly amount you pay during the policy.

Once a claim has been filed and a decision has been reached, LV aim to have the sum assured paid within 3 days.

LV over 50 life insurance

LV previously supplied life insurance for those over the age of 50; a product called 50 Plus. Unfortunately, they no longer provide this type of cover.

Their standard term life insurance will take applicants up to the age of 79 and will provide cover until the age of 89.

Therefore, they do still offer a solution for those in later life, although it could work out very expensive.

However, if you're looking for a specific over 50s policy which guarantees acceptance and requires no medical information, it's best to consider plans from another insurer.

Those who already have an LV 50 Plus plan in place can still make a claim, providing the terms of the policy are still valid.

Up to £250 of e-vouchers

LV offers up to £250 of e-vouchers to all new customers which apply for a policy directly through their website.

Summary of LV's £250 e-vouchers:

  • Value received will be based on your monthly premium payments, requiring you to spend a minimum of £50 a month to receive the full £250
  • Incentive can be selected from a number of providers from an online portal
  • Upon payment of your 6th premium, you'll become eligible for your vouchers
  • The voucher can then take up to 28 days to be delivered
  • No premium payments must be missed within this period
  • There's a limit of 2 vouchers per household in any 12-month period
  • The voucher is only available to new customers, (you can't have previously cancelled a policy with LV)
  • You must apply for your policy directly with LV via their website, (telephone applications not eligible)
  • If you apply through Reassured you won't be entitled to the vouchers

Whilst free gifts can tempt you towards choosing a specific insurer, it's important to consider the overall suitability of the policy in question.

Given that the term of your policy could last up to 45 years, £250 is unlikely to make a significant difference across this time span.

The best way of determining both the right policy at the right price is to compare quotes from multiple providers.

LV= Doctors Services

LV= Doctors Services is an online app which provides users with remote access to medical professionals and digital prescriptions.

This subscription is available as soon as your policy begins and comes with a number of their policies; however, the types are very specific.

LV= Doctors Services is only available to those who purchase life insurance and critical illness cover together directly through LV or those who purchase life insurance via an independent financial advisor.

This means that if you were to purchase life insurance alone (no critical illness cover included) directly from the LV website, you wouldn't be eligible for the subscription.

Conversely, if you were to purchase life insurance alone through an independent financial advisor you'd be eligible but not if you were to use a non-advised broker, like Reassured.

As with the £250 voucher, the key importance lies with finding the right protection, at the right price.

Critical illness cover

LV life insurance policies are available with critical illness cover at an extra cost.

This additional layer of protection starts from £5 a month and offers cover against 63 different medical conditions.

If diagnosed with a serious, yet non-terminal illness, critical illness cover will provide a lump sum pay out to help fund private medical treatment, adaptations to your home or cover the loss of income.

LV critical illness cover also provides £25,000 of cover for your children. Meaning, if your child is diagnosed with a serious illness, your policy will also provide you with a pay out.

Compare LV quotes against industry leaders

The monthly cost of premiums differs significantly between providers, so it's essential to ensure you compare quotes to obtain the most cost-effective policy.

At Reassured, we provide life insurance quotes from leading life insurance providers, including LV.

Simply provide us with all of the necessary information and we'll supply you with a range of quotes.

We'll also provide you with all the information and support you need to make an informed decision.

And the best part - Our award-winning service is completely fee-free!

Sources:

https://www.lv.com/life-insurance

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