LV= will maintain its payment break option indefinitely to help vulnerable consumers.
The payment break, which was first introduced during the coronavirus pandemic to assist LV= members in financial distress, allows vulnerable members with protection insurance to stop paying premiums for a brief time without losing coverage.
Payment pauses are available for up to three months at a time, with no responsibility to repay premiums. Existing members who qualify can continue to make claims as usual, as their coverage will be maintained per their policy’s terms and conditions.
LV= representatives are available to speak with members to better understand their situation and to signpost current choices and services available under their existing policy.
More than 300 customers have benefited from the Payment Break option since April 2020. Self-employed employees make up the bulk of eligible members, 93 per cent, who would be unable to work due to illness or injury and would get no state benefits or other employee benefits if they were unable to work due to illness or injury.
According to the LV= Wealth and Wellbeing Monitor, a quarterly study of over 4,000 UK individuals, nearly 47 per cent of self-employed people indicated their financial condition had gotten worse in the previous three months. 30 per cent of people say they are financially struggling, and 44 per cent say they have worried about money in the last three months. In the last three months, one in every five self-employed people has sought a mortgage provider, insurance provider, or bank for flexibility, compared to 4 per cent of all consumers.
LV= propositions and marketing director Justin Harper says: “LV= payment breaks were developed with vulnerable customers in mind, allowing us to step in quickly at the height of the pandemic to assist those facing financial difficulties. It is crucial in times of financial hardship that policyholders continue to have access to the support they need and are able to keep their valuable existing cover in place, which we’re able to provide through our Payment Break option.
“We continue to embed vulnerable customer considerations into our culture, practices, and processes, ensuring we support advisers and their more vulnerable clients. This is even more relevant as we see many households across the UK struggling to contend with increasing costs for their food, energy, and fuel. The extension of our Payment Break is a tangible example of translating those considerations into meaningful action for our members.”