LV Income Protection review – Is it the best and cheapest Income Protection provider?

8 min Read Published: 22 Oct 2021

LV reviewIn this independent review of Liverpool Victoria's Income Protection policy, I'll walk you through who they are, its claims history as well as give a policy summary, I'll also explain how to obtain the best value and most comprehensive Income Protection quotes.

I have spent over 20 years working in the protection insurance industry, specialising in Life Insurance, Critical Illness and Income Protection. I've also worked for one of the UK's biggest insurance companies, helping to oversee policy administration as well as underwriting. Over time I have built an extensive knowledge of not just the products, but the insurers that administer the products.

Who is Liverpool Victoria?

Liverpool Victoria (also known as LV=) was founded in 1843 and is a 'mutual', meaning it is owned by its members and not governed by shareholders. Liverpool Victoria has over 5.8 million customers (1.1 million of which are members) and is perhaps best known for car insurance. However, it also offers a wide range of general and personal protection products and is one of the leading providers when it comes to Income Protection insurance.

LV income protection policy overview

  • Minimum age at entry is 17
  • Maximum age at entry is 59
  • Minimum policy term is 5 years
  • Maximum policy term is up to 70 years old
  • Maximum benefit is up to 60% of your annual gross income up to £20,833 per month if level and up to £14,583 per month if inflation-linked
  • LV offers a benefit guarantee up to £1,500 in case your income drops below what you insured
  • Deferment period options - 1, 2, 3, 6 or 12 months (1 & 2 month waiting periods available depending on your occupation)
  • Monthly premiums can be guaranteed or reviewable
  • Waiver of premium is not included automatically but can be included separately
  • Fracture cover included free of charge
  • Full term income protection cover pays until you are able to return to work, die or reach the end of the policy term
  • Budget income protection cover pays for either 12 or 24 months depending on your choice and claims are limited to this period for each claim
  • Death benefit is included and pays £5,000 if you die within 4 years of paying for a policy and £10,000 if you die between 4 years and the end date of your policy.

What is Liverpool Victoria's income protection claims history and how does it compare?

Liverpool Victoria paid 93% of income protection claims in 2020. To put this into perspective, in 2020 The Exeter paid 91%, while Aviva and British Friendly both paid 87.5% of income protection claims. For a detailed explanation of how Liverpool Victoria handles claims, you can check out their 'approach to claims' on their website.

Summary

Liverpool Victoria offers a comprehensive income protection policy that is well priced for most occupations offering peace of mind to its customers. Fracture cover is included automatically with all policies at no extra cost and Liverpool Victoria will pay out up to £2,200 in addition to any other benefits. Additional benefits such as 'return to work benefit', 'LV doctor services' (convenient access to private doctors via an app or telephone) and a guaranteed benefit of £1,500, even if your salary drops below that level, are included free of charge. It is these little extras that have helped Liverpool Victoria to be one of the leading providers of Income Protection in the UK. When you combine this with the statistic that LV has paid an impressive 94.7% of claims you can be confident that you are buying a comprehensive product that is packed full of features, but also one that has a high likelihood of paying out.

Before you buy

Income Protection is a fairly complex policy and so it is important that you fully understand it before you buy. I would advise that you read our guide to Income Protection which goes into more detail and explains the more technical aspects such as occupation definitions and deferred periods.

How to get the cheapest Income Protection quotes

A mistake that people often make is that they assume that the best way to buy a policy is from the provider directly or through an income protection calculator. A far better way is to speak to an independent specialist* who can compare prices from every insurer and make recommendations of the most suitable and best value product so that your monthly income is protected. An independent specialist will guide you through every step of the application process and best of all, they guarantee the very best price.

I have worked in the industry for over 20 years and have experienced many good and many bad advisers. A good adviser will listen, understand your needs and make a recommendation that best fits those needs. A good adviser will tell you where you can save money and what level of cover is right for you. A good adviser will tell you when you don't need to buy anything because you already have it covered. A bad adviser will do none of that and will offer a policy based on how much and how quickly they get paid.

I therefore recommend that you speak to LifeSearch* who I've trusted to put in place the policies that protect my family. LifeSearch enjoys preferential rates due to their size and so they can guarantee to beat any quote, but more importantly, as they are independent, they can offer a personally tailored service and make recommendations for the amount of cover you need and which insurance company will serve you best, based on your own circumstances.

Furthermore, as a Money to the Masses reader, you will receive up to £100 cashback if you decide to buy your policy this way.

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article - LifeSearch