LV= life insurance review

Who is LV=?

The insurer formerly known as Liverpool Victoria started out in 1843 as a burial society, whereby participants’ voluntary subscriptions were used to help pay for the funeral costs of members and their families. Now one of the UK’s biggest insurers, LV= may be better known for its car insurance, but still harks back to its original roots with its range of life insurance products.

What types of life insurance does LV= offer?

LV’s core product is its term life insurance, which pays out a lump sum to help pay the mortgage and other expenses if you die or get diagnosed with a terminal illness. You can add critical illness cover onto this to receive a payout if you become seriously, rather than terminally, ill.

LV= term life insurance

As the name suggests, term life insurance only covers you for a specified timeframe, so it’s not as pricey as whole of life insurance. It can be a good choice if, say, you want to provide a safety net for your little ones while they’re little, but don’t want to be left forking out for cover once they’ve flown the nest (and are hopefully earning enough to look after you in your dotage – sorry, we mean “golden years”).

LV= offers three types of term life insurance:

1. Level term life insurance, where both your monthly payments and the cover amount stay the same
2. Inflation-linked life insurance, where the cover amount increases in line with inflation. Your premium increases in line with inflation multiplied by 1.5
3. Decreasing life insurance, where your payments stay the same but the level of cover decreases over time

LV= term life insurance with critical illness cover

While some insurers offer standalone critical illness cover, LV’s is only available in combination with its core life insurance policy. You can opt for level-term, inflation-linked or decreasing cover.

The critical illness add-on offers a lump sum if you’re diagnosed with one of more than 60 illnesses. For around two-thirds of these, LV= pays out the full amount, after which cover ends. The rest it dubs “additional payment” conditions – if you’re diagnosed with one of these less serious conditions, it’ll typically pay out between £12,500 and £25,000 (or a proportion of your cover, depending on which is lower), and you’ll retain your full level of cover.

With combined policies, if you choose the same level of cover for both life insurance and critical illness, you’ll only receive a payout for the first claim (so if you make a critical illness claim, you will no longer have life insurance cover). You can also choose a higher level of cover for life insurance, in which case if you claim for critical illness, you’ll still have some life insurance cover.

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Name	Product	Age range at application	Cover range	Term	Pays out	Joint cover	Link
LV= Term Life Insurance		17-79	N/A - there is no minimum or maximum	5 to 45 years	If you die or get a terminal illness and aren’t expected to live longer than 12 months	Yes - only pays out for the first member of a couple to become terminally ill or die.		Compare	loading Fetching your data...
LV= Term Life Insurance with Critical Illness Cover		17-64	N/A - there is no minimum or maximum	5 to 40 years	If you become critically ill and live for 14 days after diagnosis	Yes - only pays out in full once	Go to site	Compare	loading Fetching your data...

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Benefits of LV= life insurance

• Cover starts from just £5 a month, and LV= says that it paid 95% of life insurance claims in 2018.
• LV= life insurance customers get access to additional benefits, including discounts on general insurance products and LV= Doctor Services, which offers app- or phone-based access to expert medical advice if you need it.
• If you choose LV= term life insurance with critical illness cover, up to £25,000 of children’s critical illness cover is automatically included in your monthly premium.
• For some critical illnesses, LV= offers “enhanced” cover. This pays either 150% or 200% of your cover limit (up to a cap of £200,000) for certain conditions that can have a particularly harsh impact on people’s lives.

Drawbacks of LV= life insurance

• LV’s Life protection policy only gets a 3-star Defaqto rating out of a maximum five stars.
• Critical illness cover is only available if you also have a life insurance policy; many providers also offer it as a standalone option.
• LV’s maximum age at application for life insurance is lower than some other providers, particularly if you want index-linked insurance.
• As with most life insurance policies, if you stop paying your premiums, you won’t get any money back and your cover may stop

LV= life insurance exclusions

The specific exclusions will depend on which type of cover you take out, so you’ll need to check the policy documents carefully, but some key exclusions are:

• As with all insurance, if you don’t answer questions truthfully when you apply, this might invalidate your cover.
• LV= won’t pay a life insurance claim if you die as a result of suicide within the first 12 months of your policy.
• You can’t claim under a terminal illness in the last 12 months of LV’s life insurance plan.
• If you have the critical illness add-on, you’ll only be covered for the conditions named in the policy.

What’s the claims process for LV’s life insurance?

You (or someone claiming on your behalf) can:

• Call 0800 756 5869 (for TextDirect, dial 18001 0800 756 5869). Lines open 8.30am-6.30pm Monday to Friday.
• Email healthclaims@lv.com
• Write to LV= Claims Department, Emperor House, Grenadier Road, Exeter Business Park, Exeter, EX1 3LH

You can help make an unpleasant task go as smoothly as possible by having important information to hand, including the policy number and either medical reports from a doctor or an original death certificate, depending on what you’re claiming for.

Frequently asked questions

• What type of life insurance is right for me?

  There’s no easy answer to this question as it depends on your personal circumstances, including your finances, what other insurance you have (if your employer offers some cover, for example) and whether you have kids. If you’re not sure, it’s a good idea to get independent financial advice, as your family’s future isn’t something you want to make a mistake about.

• How much does LV= life insurance cost?

  Sorry, this is another one for which there’s no categorical answer. LV= says its life insurance starts from £5 a month, but as with all life insurance providers, the premium you pay will depend on the level of cover you choose and your personal circumstances – including your age, health and lifestyle. One thing we do know: trying to live a healthier lifestyle (ditching the ciggies, for example) will help keep costs down.

• What if I can't afford to pay my premiums?

  LV= gives you 60 days from the due date to pay your premium. After this, your cover will end and you won’t get anything back, so have a proper think about what you can afford when you take out your policy. LV= does offer something called “Waiver of Premium”. For an extra fee, this normally means that your premiums would continue to be paid on your behalf if you suffered an accident or illness that left you unable to work (subject to terms and conditions).

• Can I make changes to my policy?

  You can ask to change your end date and level of cover at any time; this may depend on your health and the terms and conditions that apply at the time. In some cases you may need to complete a new application with fresh medical screening.

• Will tax be payable on the lump sum?

  Life insurance payments are currently free from income and capital gains tax in the UK, but may be subject to inheritance tax, depending on the value of your estate. It’s also worth noting that tax rules could change in the future, which might affect the tax implications on your payout.