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Flexible Protection Plan

Protecting your lifestyle and family with one simple plan


Contents Introduction

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Income Protection Life Protection

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Critical Illness Protection

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Mortgage Payment Protection Protection with a heart

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Extra things you need to know

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Our Flexible Protection Plan at a glance

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You can get this and other documents from us in Braille, large print or on audiotape by contacting your financial adviser.

Let LV= take care of tomorow so you can relax and enjoy today Like many people you might think life’s too short to worry about what might go wrong in the future. We agree! That’s why protection is such a good idea. It means you and your family can relax and enjoy life today knowing if something does go wrong tomorrow – money needn’t be an issue. When it comes to protection everyone is different. That’s why we’ve put a variety of popular protection products into one easy plan.

But what if the money stopped?

It’s not difficult to picture how different life would be if your income suddenly stopped – particularly if your health or a serious injury meant you couldn’t work. Having protection can’t reduce the odds of something happening to you – but it can make life easier if it does. Money from our Flexible Protection Plan could help to safeguard you and your family’s lifestyle and get you back on your feet.

Our Flexible Protection Plan includes:

• • • •

It could give you: Income Protection Life Protection

Critical Illness Protection Mortgage Payment Protection

Depending on your situation you can ‘pick and mix’ from our menu or just buy one, it’s up to you. You must be a UK resident to take out any of the policies in this plan.

Money makes your world go round

 regular monthly payment to help you A pay your mortgage payments if you can’t work because of an accident, sickness or disability. A lump sum if you:

– are diagnosed with one of over 30 serious medical conditions

– suffer health problems which leave

you permanently unable to work or care for yourself – become terminally ill or die.

When life’s going well, it’s easy to take money for granted. It pays the bills and funds your lifestyle, so you can enjoy life.

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We’re here to help you look after what you love in life.

Relax with our Flexible Protection Plan When it comes to the future, most of us want to look on the bright side.

But, we shouldn’t forget that life can sometimes take a wrong turn. In case it does, it pays to be well prepared – so that at least you won’t have any money worries. Take a moment to imagine how our Flexible Protection Plan could help you and your family. What would you need money for and what kind of difference would it make? You may be thinking:

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I’d want my partner to be able to pay off the mortgage and other debts so they’re not a burden to them.

The most important thing would be to cover our living costs so that we don’t get into debt.

The school fees would also be a worry, so I’d want to make sure these could still be paid.

It’s taken a long time to build up my savings. I’m relying on them for my retirement. The last thing I’d want is to use them up if I became ill and couldn’t work.

If you’re nodding in agreement then our Flexible Protection Plan can help you. By providing money in situations like these it can give you with some peace of mind for your future. Take a look at the following pages which explain the four types of protection we offer.

5 star rated cover

Both our Income Protection and Combined Life & Critical Illness policies have achieved a coveted Defaqto 5 Star Rating which means they’re amongst the best quality products in the market, with an excellent range of features and benefits and very high cover levels.

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Income Protection Money to help safeguard your standard of living if you can’t work because of accident or sickness.

Being off sick for more than a few weeks can be a worry, especially if you don’t have much in the way of savings, or a partner’s income to fall back on. In the longer term, your lifestyle could even be at risk. Income Protection provides you with a monthly income to help pay your bills and prevent you from getting into debt, if you can’t work because of long term sickness or an accident.

What is Income Protection?

It’s an insurance policy that pays you a monthly income if you can’t work because of an accident or sickness. Put simply income protection works when you can’t.

Policy details

Your financial adviser will explain how our Income Protection can help. The following page provides some of the details you might want to discuss with them.

Protection for every eventuality You’ll be covered for most types of accident, sickness, medical condition or disability – provided it’s serious enough to stop you working or carrying out certain household tasks if you’re a homemaker.

Unlimited number of claims You can claim as many times as you need to. If you’re a homemaker and take out our Budget Income Protection we’ll cancel the policy after two years benefit payments have been made.

A choice of waiting times You can choose how long to wait before we start paying out on a claim; 1, 2, 3, 6, 12 or 24 months.

Your premiums You have the choice between guaranteed premiums (which means they’ll stay the same for the length of your policy) or reviewable premiums (which means we can change them)

Normally the longer the waiting time, the cheaper the premium. Claim durations to suit you With our full protection there’s no time limit, if you remain eligible we’ll keep paying until your policy ends. With our budget protection, each claim period is limited to a maximum of two years. If you’re a homemaker we’ll pay out for up to a maximum of two years – after that your policy will stop.

Protection for as long as you need it You can normally keep your protection going up to age 65 (cover for some occupations ends before age 65). Protection that keeps pace with rising prices Inflation will reduce the buying power of any income we pay you over the years. To help prevent this, you can choose to link your cover to the Retail Prices Index. If you do this, your premiums will go up each year in line with the Index to pay for your extra protection.

Protection from the taxman Your protection benefits can normally be paid to you tax-free (there’s no income tax or capital gains tax to pay). Tax treatment depends on your personal circumstances. Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change. Protection amounts to suit you The aim of the policy is to cover up to half your monthly income before tax. Your financial adviser will help you choose the amount of protection you need. Depending on your needs you can choose for your cover to be fixed or increase each year with inflation. It’s important you regularly review these needs with your financial adviser to make sure you are not over or under insured.

Important

This policy has no cash in value at any time. If you stop paying premiums your cover may cease. 6

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Life Protection Money to pay off your debts and take care of your family if you die or become terminally ill.

Coping without you would be difficult enough for your partner or family, but without the security of your financial support it would be even harder. The money from Life Protection could help them to:

• • • • • •

Pay off the mortgage Repay loans or credit card debts Cover funeral expenses Invest it as a nest egg for the future Pay for children’s education or child care Manage other living expenses

What is Life Protection?

It’s an insurance policy that pays out a lump sum when you die. If you become terminally ill before the last 12 months of the plan, we’ll pay the lump sum early.

Policy details

Your financial adviser will explain how our Life Protection can give you and your family greater financial security. Here are some of the details you might want to discuss with them.

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Your protection choices We offer three types of life protection: Level cover – the amount you’re covered for is fixed when your policy starts. Please be aware that inflation will reduce the buying power of the level of cover you choose. Inflation-linked cover – the amount you’re covered for goes up each year in line with the Retail Prices Index (and so do your premiums). This helps you keep pace with inflation. Decreasing cover for repayment mortgages and loans – the amount you’re covered for reduces in line with how much you have left to pay on your mortgage or loan (assuming you keep up-to-date with your payments). This cover caters for up to a maximum interest rate of 12%. There’s no waiting period before a claim is paid. We’ll pay the money as soon as the claims process is complete.

Your premiums Premiums are guaranteed. This means they’ll stay the same for the length of your policy (unless you choose inflationlinked cover). Protection for as long as you need it You can choose any term for your policy (from five to 45 years) but you must be under age 85 when your protection stops (under 65 for inflation-linked protection). Adaptable protection If you’re using the protection for a mortgage you may be able to switch it to a new loan if you move house. And, you can apply for extra cover if you need it, or even reduce it.

What about tax? Payments from the policy will normally be free from income tax and capital gains tax. We usually pay the cash lump sum from the plan to your estate, unless you put the policy in trust. If the total value of your estate is more than the inheritance tax nil rate band when you die, it could be subject to inheritance tax. Tax treatment depends on your personal circumstances. Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

Important

This policy has no cash in value at any time. If you stop paying premiums your cover may cease.

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Critical Illness Protection Money to take care of you and your family, or repay your mortgage if you’re diagnosed with one of over 30 medical conditions.

Being diagnosed and suffering from a critical illness can be emotionally and physically draining, disrupting your ability to earn a living or care properly for yourself and your family. Whether you make a speedy recovery or have to cope with spells in hospital, our Critical Illness Protection can provide a one-off sum of money to help you through.

What is Critical Illness Protection?

It’s an insurance policy that pays out a lump sum if you survive 14 days or more after being diagnosed with one of over 30 conditions covered by our policy.

Policy details

Your financial adviser will explain how our Critical Illness Protection can give you and your family greater financial security. The following page provides some of the details you might want to discuss with them. Protection for over 30 conditions We’ll pay out a lump sum if you survive 14 days after being diagnosed with one of the conditions included in your policy (for example certain types of cancer, heart attack or stroke).

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We only cover the critical illnesses defined in our policy and no others. Even if you make a full recovery, the policy still pays out. Options to suit you You can choose to have a Critical Illness Policy on it’s own, or combine Critical Illness Protection with Life Protection. You can also decide if you want to include Permanat Total Disability which will pay out if any other illness, condition or disability is so severe that it permanantly prevents you from ever going back to work, or permanantly prevents you from taking care of yourself at home without help. As much protection as you need We offer three types of critical illness protection: Level cover – the amount you’re covered for is fixed when your policy starts. Please be aware that inflation will reduce the buying power of the level of cover you choose. Inflation-linked cover – the amount you’re covered for goes up each year in line with the Retail Prices Index (and so do your premiums). This helps you keep pace with inflation.

Decreasing cover for repayment mortgages and loans – the amount you’re covered for reduces in line with how much you have left to pay on your mortgage or loan (assuming you keep up-to-date with these payments). This cover caters for up to a maximum interest rate of 12%. Your premiums If you only buy Critical Illness Protection your premiums will be reviewable. This means that we can change your premium over the length of your policy. If you buy Combined Life and Critical Illness Protection you have the choice between guaranteed (which means they’ll stay the same for the length of your policy unless you choose inflation-linked cover) and reviewable premiums. Protection as long as you need it You can choose any term from five to 40 years up to age 65 for your policy. Protection for your children at no extra cost If you have any children, we’ll cover them for up to 20 conditions, from 30 days old until their 18th birthday.

The cover they’ll get will be half of yours, up to a maximum of £25,000. Your own cover and premiums won’t be affected by any children’s claim. Adaptable protection If you’re using this protection for a mortgage you may be able to switch it to a new loan if you move house. And, you can apply for extra cover if you need it, or even reduce it. Protection from the taxman Payments will normally be paid tax-free. Tax treatment depends on your personal circumstances. Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

Important

This policy has no cash in value at any time. If you stop paying premiums your cover may cease.

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Mortgage Payment Protection Money to help pay your mortgage each month if you can’t work for health reasons.

With our Mortgage Payment Protection we’ll pay you an income to help you keep up-todate with your mortgage payments if you can’t work due to sickness or accident. So you won’t need to worry about the lender repossessing your home if you fall behind.

Health protection You’ll be covered for most types of accident, sickness, medical condition or disability – provided it is serious enough to stop you working or carrying out certain household tasks if you’re a homemaker.

What is Mortgage Payment Protection?

Helping you to keep premiums down There are several options to help you get the value for money you need. You can choose:

It’s an insurance policy that helps to meet your monthly mortgage commitments, if an accident or sickness prevents you from earning a living.

T o link your Mortgage Payment Protection to Critical Illness Protection or Combined Life and Critical Illness Protection. If you do this, your Mortgage Payment Protection will finish if we pay a Critical Illness claim.

 udget Health Protection – with its B maximum payout period of two years.

 longer waiting time before claims A are paid.

Policy details

Your financial adviser will explain how our Mortgage Payment Protection can help to keep your home secure. The following page provides some of the details you might want to discuss with them. Protection for all types of mortgages This type of protection pays out a regular monthly income to help you keep up your mortgage payments.

A choice of waiting times You can choose how long to wait before we start paying out on a claim; 1, 2, 3, 6, 12 or 24 months.

Claim durations to suit you There is no limit on the number of claims you can make: Health claims – There is no time limit on how long we’ll keep paying out on a claim – provided you remain eligible, the claim can last until your policy ends.

Adaptable protection The aim of the policy is to cover your monthly mortgage payments. If you move, we may agree to switch your cover to your new mortgage. And, you can apply for extra cover if you need it, or even reduce it.

Budget Health claims – Each claim is limited to a maximum of two years. If you’re a homemaker we’ll pay out for up to a maximum of two years - after that your policy will stop.

Protection from the taxman Currently, the money we pay out is tax-free (there’s no income tax or capital gains tax to pay). Tax treatment depends on your personal circumstances.

During this time your premiums are guaranteed not to go up – unless you opt for Reviewable Premiums, which means we can change your premium over the length of your policy.

Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

Important

This policy has no cash in value at any time. If you stop paying premiums your cover may cease.

Normally the longer the waiting time, the cheaper the premium.

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Protection with a heart When you take out a protection plan with LV= you’ll be able to take advantage of the following benefits absolutely free. Extra Care

We’re here to support you emotionally as well as financially. So, if you’re diagnosed with a serious illness, our free Extra Care service will offer you and your family the practical and emotional support you need. Depending on the nature of your claim, it’s available if you claim under our Critical Illness Income Protection or Mortgage Payment Protection policies. You’ll have direct access to a personal nurse adviser who can give you valuable help throughout a difficult time. As well as talking to you on the phone their knowledge and experience can help you access a network of care services, equipment providers, charities and self-help groups. They can also arrange therapies, counselling and home visits by a nurse or occupational therapist specialising in your condition who can assess your needs and write a report for your doctor. This can help you quickly access any special services or equipment you need.

You also benefit from health and lifestyle screening options, sight tests, discounts on gym membership and health-related products. The service is operated for us by ‘roadtohealth’, part of ‘the healthpeople group’ which provides health screening and lifestyle services to companies and members of the public.

Membership

When you take out a protection plan, you’ll automatically become a member of LV=. Benefits include:

 iscounts on our products D You’ll have access to a range of discounts and enhancements on our other protection, savings and investment products plus Car, Home, Travel and Pet insurance.

 ccess to the LV= Member Care A and Support Line Our Member Helpline is a support service exclusively for members. It’s available 24/7 and provides members with confidential, expert advice from qualified professionals on a range of legal and medical issues.

T he opportunity to have a say in the running of our business Members can vote at our Annual General Meeting and have a say in how the society is run.

It’s provided for us by Red Arc, one of the UK’s leading Care Advisory Services.

Healthy Steps

We give you free deluxe membership of Healthy Steps, a health and lifestyle website. You can use it to rate your health risks and receive a personal report and action plan for keeping fit, active and healthy.

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For more detailed information on member benefits, please visit www.LV.com/yourmembership 15


Extra things you need to know The importance of paying your premiums

We provide your protection in return for you paying your premiums each month. If you forget to pay, or don’t have enough money please talk to us. We’ll give you 60 days to put this right, but if you don’t pay then we’ll have no choice but to stop your protection. After that you won’t be able to claim. Because this is a pure protection plan, you won’t get any money back if you decide to stop paying premiums. Your cover will normally stop after 60 days.

How benefits are taxed

Many benefits paid out by this plan are currently ‘tax-free’ (however life protection might be subject to inheritance tax in certain circumstances).

About making a claim

There are no standard exclusions relating to this plan (this means there is no small print and we pay out regardless of the cause of claim; some insurers have standard exclusions for things like acts of war, AIDS, and suicide – but we don’t). We aim to treat every claim fairly and with individual consideration, in line with strict guidelines set out by the Association of British Insurers. Each type of protection has a different set of conditions setting out exactly when we will and won’t pay a claim. Please read these carefully so you know what to expect. We will need evidence before paying a claim, for example to prove your age, occupation and medical condition. We aim to assess claims and pay out benefits as quickly as possible.

By tax-free we mean free of income tax and capital gains tax; this is based on our current understanding of tax rules and HM Revenue and Customs practice, which is subject to change. Tax treatment depends on individual circumstances so if you’re in any doubt, please speak to your financial adviser.

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Our Flexible Protection at a glance To help you select the protection you need, here’s a quick comparison.

Income Protection

When you might need it

When you can claim

Money saving options

What it pays out

When it pays out

How the money is taxed

If you need money to live on when you’re off work sick for a prolonged period of time.

If you can’t work because of: • Sickness • Accident • Disability.

Budget protection is available.

A regular monthly income, to the end of the term of your plan if necessary.

You choose the time delay – 1,2,3,6,12 or 24 months after you become sick or have an accident.

It is normally tax-free.

Choice of deferred periods available.

The budget cover option pays out for a maximum of two years.

Life Protection

If you need to make sure your family is secure and/ or mortgage or other debts are paid off if you die.

If you die or become terminally ill.

It can be combined with Critical Illness Protection.

A one off lump sum can be paid when the legal process of winding up your estate is complete. (If written in Trust, the money can be paid immediately).

As soon as possible after the claim is made, although in some cases the beneficiaries may not be entitled to receive the money until your estate has been officially wound up.

It’s normally paid into your estate (unless you put it in trust) and may be subject to inheritance tax.

Critical Illness Protection

If you need money to support you and pay for further care while you recuperate from a serious medical condition; or in case you can never work again. The lump sum may also be used to help pay off a mortgage or other debts.

If you or one of your children get a Critical Illness covered by the plan.

It can be combined with Life Protection, and/ or linked with Mortgage Payment Protection.

A one off lump sum if you survive 14 days after being diagnosed.

If you survive 14 days after diagnosis.

It is normally tax-free.

If you need to keep up your mortgage payments if you are off sick.

If you can’t work because of: • Sickness • Accident • Disability.

You can include it with Critical Illness Protection (either the standalone version or when also combined with life cover).

Monthly amount to help pay your mortgage, to the end of the term of your plan if necessary.

Health claims: You choose the time delay – 1,2,3,6,12 or 24 months after you become sick or have an accident.

It is normally tax-free.

Mortgage Payment Protection

Option to include cover for Permanent Total Disability or have this on its own.

Budget protection is available within the health cover option.

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The budget cover option pays out for a maximum of two years.

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Protection

Pensions

Annuities

Equity Release

Investments

LV= and Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV=Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333. 20911146 05/10


Flexible Protection Plan Customer Brochure