LV= reinstates day 1 and week 1 waiting periods for self-employed personal sick pay applicants
Protection specialist LV= is reintroducing day one and week one waiting periods for self-employed customers applying for LV= Personal Sick Pay (PSP).
LV= were the first to remove restrictions for traditional workers in 2020 and this development will return LV= PSP waiting periods to pre-Covid levels. Restrictions on short waiting periods were adopted by many protection providers in response to the coronavirus pandemic.
The LV= Wealth and Wellbeing Monitor* – a quarterly survey of 4,000+ UK adults - revealed that self-employed workers are struggling financially or have seen their finances worsen over time:
- 1 in 5 self-employed describe their current financial situation as ‘struggling’.
- Self-employed workers are more likely than the general population to say their finances have got worse in the past 3 months (33% vs 26%).
- A third (33%) of self-employed are worried about money at the moment, while 30% are worried about the future.
LV= Personal Sick Pay is a form of income protection designed specifically for the self-employed and those in riskier or more manual occupations who are harder to insure. It includes a benefit guarantee to protect those who experience a drop in income after taking out the policy. Customers can have up to £1,000 a month cover for the first two years of any claim.**
A temporary Covid exclusion for symptoms lasting under four weeks will remain for PSP applicants, meaning that a claim won’t be paid during that time if it is due to symptoms of coronavirus, respiratory tract infection, cold or flu. If the symptoms are more serious and last beyond four weeks, the claim will be considered and can be backdated to reflect this.