Protection claim payouts soar to £98 million at LV=

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Protection claim payouts soar to £98 million at LV=

24/04/2019
PROTECTION

New figures reveal that protection specialist LV= paid record individual protection claims totalling £97.9 million during 2018 – up £10 million up from 2017. Through the course of the year, LV= supported over 7,400 new and existing claimants and their families, as they dealt with life-changing events.

Payouts to new and existing income protection (IP) claimants totalled over £14 million, with musculoskeletal problems (33%), cancer (23%) and mental health (20%) the most common conditions for new claims. During the year LV= paid out nearly £5million to support new and existing claimants with mental health issues.

 

2018 also saw LV= expand its tele-claims service to all new IP claimants to help improve their experience of making a claim. Specially trained claims professionals are on hand to speak to customers, talk through their individual situations, advise on any extra supporting evidence that may be needed and start the process of organising any appropriate early intervention support.

 

Through its new partnership with Innovate – a leading early intervention specialist – LV= offered individual rehabilitation, emotional and back-to-work support to over 100 IP claimants in the second half of 2018.

 

Some of the features recently added to the LV= protection products have already started to make a difference to policyholders. For example fracture cover, which was added to IP policies in 2017, saw a number of claims in 2018 – the lump sum benefit payout helps avoid short-term income shocks resulting from injuries and is paid with no need to make a full IP claim.

 

Overall, LV= settled 94% of all individual protection claims across its lifecritical illness, terminal illness, income protection and unemployment policies.

 

Last year, LV= paid out more than ever for individual protection claims. These numbers prove that protection and features such as fracture cover can play a vital role in helping people when they need it the most.

We believe that modern insurance should be about more than just the cover provided and money paid out. Our partnership with Innovate allows us to provide meaningful, practical and emotional support for claimants and their dependants – providing tailored rehabilitation, helping people back to work and sometimes even helping them to launch a completely new career.

Our tele-claims service has transformed our claimants’ experience for the better. Customers can speak directly to our trained claims team, helping us to understand and respond to their situation immediately, at what often can be an emotional and vulnerable time. For income protection claimants, this allows us to quickly decide on the best types of support and get them on to the road to recovery more quickly.

Chris McNab, Protection Proposition Director at LV= said:

Notes

Figures relate to all underwritten protection claims and non-underwritten protection claims (over 50s plans) paid in 2018.

New claims – LV= major protection products – 2018

 

Type of productTotal value paidAverage claim paidAverage age of claimant
Non-underwritten (over 50s whole of life)£14,306,208£3,60259
Critical Illness£24,817,630£78,33449
Income Protection£2,224,492£1,221 a month46
Personal Sick Pay£2,330,690£872 a month37
Term Life Insurance£30,719,728£60,47262
Terminal Illness£8,138,992£99,25657
Underwritten whole of life£1,916,332£28,18175