Protection promises Products, adviser support and recent innovations For financial adviser use only. Not to be used with customers. 1
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Helping your clients protect what matters most At LV= we love simplicity, transparency and achieving great value. And because we re a mutual company, run for the benefit of our members, we can concentrate on these things without compromise. We can help your clients do this by offering a high quality protection proposition, and by dealing with them in the way we d want to be treated ourselves. When it comes to protection, we know that everyone is different so, we have a variety of protection products they can choose from including a menu plan which covers income, critical illness and life protection. And with your help, your clients can rest assured they re fully covered and able to cope financially, no matter what life throws at them. By choosing LV=, they ll benefit from: an award-winning range of protection products and service the peace of mind that they ve chosen an insurer who prides themselves in paying claims membership of a mutual and the UK s largest friendly society But, although we re known for providing a range of quality protection products we re always looking for ways to improve. This document has been designed to give you an overview of our protection proposition and some of the changes we ve made so far this year to help you and your clients to protect what they love in life. 3
Protecting your clients and their loved ones Our protection plans are designed to offer your clients peace of mind 4
Flexible Protection Plan Protect your clients lifestyle and finances with our menu plan. Put simply, this plan aims to protect your client s family and lifestyle. It can safeguard their mortgage payments and regular income if they re off work due to accident or sickness, as well as their finances if they re diagnosed with a critical illness, if they become terminally ill or die. The plan Choice of life, income, critical illness and mortgage payment protection Choose different cover levels and terms for each protection policy Ability to mix and match level and decreasing term cover for shared ownership schemes Single and joint life plans available Discounted policy fee for multiple policies Optional Waiver of Premium Guaranteed Insurability Options No standard exclusions Free support service upon a successful claim for a serious illness Mortgage & Lifestyle Protection High quality accident, sickness and unemployment cover. With a choice of commission options, including attractive upfront commission terms, Mortgage & Lifestyle Protection is rewarding for you, as well as your client. The plan Long-term accident and sickness with option to include unemployment cover Cover can be split between mortgage protection and living expenses Own occupation definition when the plan starts Multiple and repeat claims covered Choice of waiting periods No standard exclusions for accident and sickness cover LifeTime+ Guaranteed whole of life plan. Using LifeTime+ with one of our trusts will guarantee a lump sum to help offset inheritance tax, or any other financial liabilities when your client dies. The plan Guaranteed, pure protection whole of life policy Level or inflation-linked protection Fairer indexation costed at outset Guaranteed premiums Guaranteed Insurability Options Optional waiver of premium Single or joint life, first or second death options own life or life of another Family Income Assurance Life cover which pays a tax-free quarterly income. The quarterly income from this plan can be used to maintain your client s family s lifestyle when they die. The plan Tax-free quarterly income Level or inflation-linked protection Waiver of Premium Single, joint life or life of another available Gift Inter Vivos Decreasing life cover lasting seven years. This plan is designed to cover a potential inheritence tax liability if your client gifts a large amount of money. The plan Seven year policy Fixed premiums The cash lump sum reduces over the term Single life or life of another Guaranteed premiums for accident and sickness cover and unemployment cover No mortgage required Automatic mortgage guarantee included These plans have no cash in value at any time. If your clients stop paying premiums, their cover may cease. Full details on our protection plans, can be found in the relevant policy documents. 5
Developments In the last year, we ve: had 7 reprices In the last year, we ve had 7 re-prices across our range. Overall, we ve reduced our rates by an average of 5% which means your clients can benefit from even better value protection improved our income protection Guaranteed Increase Options, Back to Work Support and Career Break Option are now available on both our full and budget income protection plans. improved our critical illness cover We ve enhanced four of our definitions to ABI+ and introduced premium reductions of up to 50% for cancer exclusions. enhanced our Mortgage & Lifestyle Protection The plan now includes the ability to choose different waiting periods for the sickness and accident benefit and the unemployment benefit improved non medical limits We ve improved our automatic non medical limits which means more of your clients will be accepted at point of sale, resulting in quicker end to end times and as a result improved take up. Quality protection you can rely on We re proud to have received a number of prestigious awards and endorsements across our whole protection range. Being recognised in this way reflects our commitment to excellence and our ongoing investment in product design, people, customer service and technology. Our Income Protection, Combined Life & Critical Illness (level and decreasing cover), and Mortgage & Lifestyle Protection have all achieved a coveted Defaqto 5 Star Rating which means they re amongst the best quality products in the market. We were awarded the Gold Standard Award for protection in 2008 and 2009. The awards seek to reward the best in financial services based on an assessment of financial strength, capability, service, fair value and trust. Introducing Mark Jones, our new Head of Protection. In January 2010, we welcomed Mark to head up our protection team. He s an actuary and with over twenty years expertise in the protection market, having worked in actuarial and management roles at Abbey Life and most recently at Friends Provident. Mark is recognised as a key figure in the protection market and regularly comments in the media on the benefits of protection and related issues. So why not look out for him when you next read your favourite title or when clicking through popular trade news sites When I was first approached about the role at LV= I was interested enough to want to know more. LV= has a reputation in the industry for innovation and I already knew and respected some of their key people. As the recruitment progressed I learnt more about LV= and became excited about the potential that had been developed and was ready to be released on the protection market. I have now been in the role for over eight months and I have not been disappointed, in fact far from it. We have already delivered significant improvements to pricing, products and processes. The plans we have in place for further improvement and the drive of my colleagues and their openness to change continues to motivate me. We recognise we still have a lot to do before we achieve our vision of being a top protection office, but we are also confident that we have the strategy in place to get us there. If you have any comments on the changes we have made or that you believe would improve our service to advisers I am very interested in hearing them. So you can be confident that we ll look after your clients fairly. We re also pleased to have been awarded the Best Innovation Award in 2009 by MoneyFacts for Mortgage & Lifestyle Protection and most recently Best Life Insurance provider by What Mortgage 6
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Supporting you every step of the way We understand that being a well respected and leading provider isn t just about offering the right products it s also about delivering the right support and service. Easy to do business with Not only do we offer great value but we want you to feel good when you deal with us. Our aim is to offer you Better Business in every possible way we can. This means helping make a real improvement to your business by offering you expertise, efficiency and excellence. We ll work closely with you to improve client acquisition, business mix and business profitability. Our People It may sound like a cliché, but the most important part of our business is the people. You can be confident you ll receive the highest level of service throughout your relationship with us. We have specialist sales teams across our whole product range Dedicated adviser website In November 2009, we launched our brand new website. Designed to make life easier for you, it s a one-stop shop where you can have access to our full range of products, tools and online services with just one simple log-in. Highlights include: Access to our award winning range of products in one place Easy to use and navigate A single sign on Ability to quote and apply online Download and order literature Access to a range of toolkits and support materials Why not visit the site at LV.com/adviser Each team is backed up by a dedicated sales support set-up providing experienced, operational and technical support for financial advisers We have a UK based operation centre dedicated to protection 8
Apply online At LV= we re passionate about making business easier for you and your clients. We understand applying for protection can sometimes be complicated. So you can apply for our Flexible Protection Plan and Mortgage and Lifestyle Protection using our intelligent online underwriting system. You can either complete full application or use our express route and simply enter a few details about your client and let us do the hard work. Benefits at a glance: Full Express route No paper, stamps or hassle 3 3 Mix and match elements of FPP 3 3 Online support 3 3 Reduced need for a medical report 3 3 Consistent underwriting approach 3 3 Faster acceptance 3 3 Immediate decision 3 3 Improved disclosure via tele-interviewing 7 3 Toolkits We want you to feel good when you deal with us so it s essential for us to offer you the right support. We ve designed a range of toolkits to help explain the need for protection you when you re talking to your customers. They include: Helpful sales ideas and tips Case studies Sales aids and brochures Interactive calculators Plus you ll get an extra 10% Lautro commission by applying online even if you use our tele-interviewing service. For Mortgage & Lifestyle Protection applications, only the express route is available followed by a tele-interview. 9
Underwriting Whichever way you prefer to do business with LV=, we ll make sure we process your applications as quickly and efficiently as possible. Our philosophy We appreciate that the last thing you or your client wants is a nasty surprise if they need to make a claim. So at LV= we take care to gather all the necessary information about your client up front. And this is easier than it sounds with our streamlined underwriting approach, experience and use of technology. We aim to offer competitive and realistic terms immediately for the vast majority of applicants. For online applications our rules based system, responds to the information you enter and only asks for essential and relevant information. We use telephone interviews and telephone underwriting to gather risk based information directly from your client. This helps us avoid requesting medical and GP reports, which often take several weeks to complete. The quality of our underwriting decisions is regularly monitored through internal and external processes so our underwriters can continue to offer the best possible decisions on the information available. Our team Our underwriting team have over 135 years combined experience and have undergone extensive training so they re fully qualified to underwrite your business. As a business we fully support the joint Chartered Insurance Institute (CII) and Assurance Medical Society Diploma in Life and Disability underwriting. All team members are encouraged to study for this industry acknowledged qualification and we re proud that several of our team members already hold it. Tele-interviewing service Applying for protection can sometimes be complicated, so why not let us do the hard work for you? Unlike some of our competitors, we have an in-house team who will complete the application process, saving you time and making applications hassle-free. They ll make sure the information collected is accurate, reducing the risk of non-disclosure and taking the worry and responsibility away from you. We may also phone your client to obtain specific medical information from them. We ve found that this approach helps us get a much better understanding of any medical conditions and helps avoid long delays with GP reports. So, we can underwrite and offer terms more quickly. To take advantage of our tele-interviewing service, select the Express Route when you apply for the Flexible Protection Plan online and we ll do the rest. Mortgage & Lifestyle Protection applications are all tele-interviewed automatically. Go-Live We appreciate that advisers lead busy lives, so if you want to request a go-live date for your policies just email us when you want it to start. We ll send a confirmation once it s done so you don t have to spend your time on the phone anymore. Simply email golive@lv.com 10
Large case team We recognise that larger cases are often more complex as they can require detailed medical and financial assessments. That s why we offer you a dedicated team who will look after your large case application. You ll benefit from: access to a specialist underwriter who will deal with the application from start to finish a dedicated team who ll actively chase and review medical evidence on the day of receipt to avoid long delays which means less hassle for you and confidence that your client s application will be processed as quickly and efficiently as possible. The following shows the limits which apply: Product Flexible Protection plan: Life Critical Illness Income Protection Large case minimum qualifying criteria All covers 500 monthly premium, or 1,000,000 sum assured 500,000 sum assured 5,000 monthly benefit Other life products: All covers Lifetime+ 500 monthly premium, Family Income assurance or 1,000,000 some assured Gift Inter Vivos Did you know Two of our underwriters, Lisa Byrne and Charlotte Smith, have been awarded the H J Greening prize by the CII. This highly prestigious prize is awarded each year to the individual who has the best life insurance paper of all candidates in the UK. Charlotte was awarded the prize in 2008 and Lisa in 2009. Since we launched our in-house tele-interviewing service in 2006 we ve completed over 57,000 interviews. The majority of our tele-interviewers have a health professional related background. We ll review policies where we ve made an underwriting decision to apply an exclusion. If we receive medical confirmation that the client is fully recovered and symptom free, we ll remove it after an appropriate time period. Contact us: Underwriting team You can access our underwriters directly to discuss complex cases upfront or after we ve made decisions on cases by emailing preunderwriting@lv.com You can also download a copy of our underwriting guide from LV.com/adviser. Tele-interviewing service To schedule an interview, you can call our team on 0845 640 5891 or email tele.interviewing@lv.com 11
Claims The right protection can provide your clients with peace of mind that they ll be able to cope financially, no matter what life throws at them. But it s also important to be with a company who they can trust to pay their claim and support them when they need it most. Our philosophy At LV= we believe we re different from other financial organisations. We won t treat your clients like a number we ll take the time to understand their problems and how we can help them. As a mutual, our values and behaviours are naturally aligned with Treating Customers Fairly. We take pride in offering confidence and comfort when it matters most when your client needs to make a claim. Paying claims and going the extra mile are both very much part of our heritage. Our services and approach go beyond simply paying a cheque. Our team Our in-house claims team has over 150 years of experience in dealing with all types of protection claims and are committed to treating all customers fairly. They have a wealth of knowledge and an enviable track record in providing a sensitive, professional and supportive service during what can be a difficult time. Each team member has an average of over 10 years experience in dealing with all types of protection claims and are committed to treating all customers fairly. 12 Direct access Each claim is different, so if your clients ever need to make a claim, they can contact the person who ll be dealing with their claim directly rather than going through a call centre. By speaking to our claims team directly, we can understand the circumstances of your claim and see what we can do to help you get back to work. They have the option to complete a standard claim form or claim over the phone. We can even visit your client to help them complete the form. We guarantee to respond to all enquiries within four days. We pay claims In 2009 we paid over 47million to our protection policyholders, including almost 8million in critical illness claims, and just under 12million in income protection claims 90% of our income protection claims 90% of our critical illness claims We have a range of guides for you to share with your clients explaining full details our claims statistics, cause of claims together with some real life examples. Visit LV.com/adviser to order your copy. Help us to pay claims When your client completes their application it s really important that the information they ve given us is correct. This is because we use this information to determine whether we are able to offer them a policy, and also how much they need to pay us for the cover we provide them with.
If they don t answer the questions we ask truthfully or in full, it could mean that their policy may not pay out in the event of a claim. This is called non-disclosure. If you re client isn t sure whether we need to know about something or not please tell us, and let us make that decision. You can help reduce the risk of non-disclosure by using our in-house tele-interviewing service when you apply. Back to Work Support We want to help your clients get back to work, so we ll provide financial support for them to get back into employment with our back to work services and advice scheme. This is available where we believe your client has a valid income protection claim and that the support or advice would help them return to work. The majority of companies today don t allow you to speak to the decision maker but only allow you to give information that would be passed on. To be able to talk to the main person is so reassuring. Mr C, Malmesbury Following the payment of an income protection claim. All too often, good customer service is not fully recognised. However, in my experience with LV=, the service I ve received has not only been excellent but also life changing. Mr D, Fife Following a critical illness claim for heart surgery. Protection with a heart Our ethos of caring means we re here to support your clients emotionally as well as financially. So, if a protection client is diagnosed with a serious illness, they ll have direct access to Extra Care, our free counselling and support and service. Contact us: If you have any questions about our claims process you can call the team directly on 0845 640 5273 or email us at claims@lv.com Benefits include: Emotional and practical support from a personal nurse adviser A free home visit from a specialist nurse or occupational therapist, or a course of treatments with a therapist or specialist counsellor A personal support plan Unlimited telephone support for your clients and those close to them 13
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More reasons to use LV= We also offer Not only does LV= offer a comprehensive range of protection policies, we have a range of products designed to help your clients enjoy their retirement and later years. Annuities Providing your client with an income by using the proceeds of their pension fund to buy an enhanced rate annuity. Choose between our Pension Annuity and With-Profits Pension Annuity. Standard rates are also available on our With-Profits Pension Annuity. Flexible Transitions Account A retirement plan designed to cater for every aspect of your clients complex and changing lives. A range of investment choices and freedom to combine and switch before and during retirement. Options to grow their pension fund, consolidate existing pension arrangements and draw retirement income. Equity Release If you have clients who need to make ends meet during their retirement, or they want to maintain their existing lifestyle or improve it, our equity release schemes could help. We have a choice of drawdown and lump sum lifetime mortgage options. These are lifetime mortgages. To understand the features and risks please ask for a personalised illustration. Protected Retirement Plan Our Protected Retirement Plan has been designed to offer your clients a choice of some of the best features of both annuities and unsecured pensions, without the investment risks of unsecured pensions and without them having to commit to a set income for life as annuities do. Once the plan starts your clients cannot change the basis of their plan or cash it in at any time. Mutually beneficial We have a proven track record as one of the most trusted mutual societies in the UK. As a mutual, we re able to put our members above all other considerations. By taking out one of our protection products, your clients may be eligible to become one of our members. This means they could benefit from discounts on product, access to our Member Care and Support Line and have the chance to have a say in how we re run. Membership By taking out one of our protection products, your clients will automatically become one of our members. They ll benefit from: Discounts on our products They 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. Access to the LV= Member Care 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. The chance to have a say in how LV= is run Members can vote at our Annual General Meeting and have a say in how the Society is run. For more detailed information on member benefits, please visit LV.com/members 15
Useful contacts For more information on our protection products please speak to your dedicated account manager or visit LV.com/adviser Quotations and sales support: 0845 602 0690 New business: 0800 028 6333 Existing business: 0845 640 5273 Arrange a tele-interview: 0845 640 5891 Claims team: 0845 640 5273 General queries: New and existing business: Underwriting queries: Arrange a tele-interview: Request a policy live date: Claims: ifasupport@lv.com protection.admin@lv.com preunderwriting@lv.com tele-interviewing@lv.com golive@lv.com claims@lv.com Lines are open from 9am to 5pm Monday to Friday. 9am to 9pm for our tele-interviewing service. For Textphone dial 18001 first. Your calls may be recorded and/or monitored for training and audit purposes. BETTER BUSINESS 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, AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333. 16 21015124 09/10