LV Life Insurance review

12 min Read Published: 05 Aug 2020

LV Life Insurance reviewLife insurance can provide valuable financial protection for your dependents should you die prematurely. In this independent review, we take an in-depth look at LV life insurance, including cover types, typical costs and additional benefits.

Who is LV?

LV - or Liverpool Victoria - was established in 1843 as a burial society in Liverpool, and was most commonly associated with offering ‘penny policies’. Policyholders could insure their own or their child’s life for as little as one penny a week and the society would pay towards a funeral.

By 1883 the company had more than 2,000 employees and in 1930, London’s Victoria House in Bloomsbury Square became the company’s new head office. By 1945 the office had more than 12,000 staff. In 1996, Liverpool Victoria took over the Frizzell Group and relocated its head office to Bournemouth. Eleven years later, the insurer launched a more ‘vibrant and modern’ brand, including a new logo and iconic green heart.

Other acquisitions have included ABC Insurance, LV= Britannia Rescue, Highway, Wealth Wizards and Teachers Assurance.

LV was recognised as the Which? Insurance Provider of the Year 2019, and some of its products have received a five-star rating from independent financial research company, Defaqto. LV was also voted joint first place as the UK’s No.1 insurer for customer service in the UK Customer Satisfaction Index survey July 2020.

LV Overview

Below is an overview of LV’s life insurance policy, including the types of cover available, the insurer’s claims history, and additional benefits of taking out a policy.

  • Policy types: Choose from level term, decreasing term, increasing term and family income benefit. Choose from joint and single policies. Terminal Illness Cover is automatically included and you can combine life insurance with critical illness cover.
  • Claims record: 2019 - Life insurance 99%, critical illness 88%. 2018 - Life insurance 95%, critical illness 89%. 2017 - Life insurance 95%, critical illness 88%.
  • Additional benefits: Policyholders have access to LV Doctor Services through one handy app, including remote GP consultations and second medical opinions.
  • Up to £100 cashback: If you apply for a policy through LifeSearch* (click on the link and complete the short form) you will receive up to £100 cashback. You can find out more below.

LV Policy Summary

Key facts and features for LV’s life insurance policy are highlighted below:

Type of cover Life Insurance
Options Level term, decreasing term, increasing term, or family income benefit.
Policy Coverage Single or joint life first event (pays out on first death).
Terminal Illness Cover included? Terminal Illness Cover is automatically included and pays out if you are diagnosed with an illness and life expectancy is less than 12 months.
Can cover increase over time (indexation)? If you choose inflation-linked life insurance, the amount of cover will rise each year in line with the Retail Prices Index measure of inflation. Your premium will also go up by inflation multiplied by 1.5.
Waiver of Premium You can choose to add Waiver of Premium for an additional cost. This means you won’t have to pay your premiums if you cannot work due to an accident or injury.
Minimum age at entry 17
Maximum age at entry 64 (59 for inflation-linked cover)
Policy Exclusions Suicide in the first 12 months is not covered. Terminal Illness Cover will not pay out if the illness is not expected to cause death within 12 months.

 

Key facts and features for LV’s critical illness policy are highlighted below:

Type of cover Critical Illness
Can it be combined with life cover? Yes.
Premium type Guaranteed or Reviewable.
Number of critical illnesses covered 87
Children’s critical illness cover included Standard children’s critical illness cover is included for no additional cost and will cover children from birth until their 23rd birthday. It pays a lump sum equal to half of the amount of cover on the main policy (up to a maximum payment of £25,000).
Minimum age at entry 17
Maximum age at entry 64 (59 for inflation-linked cover)
Policy exclusions No payout will be given if you die within 14 days of being diagnosed with a critical illness (this does not apply to children’s cover) or if you are diagnosed with an illness not covered by the policy.

 

Additional free benefits provided by LV

  • Terminal Illness Cover is automatically included with life cover and will pay out if you are diagnosed with an illness and your life expectancy is less than 12 months.
  • LV Doctor Services is included which provides access to six expert medical services through a smartphone app or via a phone call. These include prescription services, second medical opinions and remote GP consultations.
  • Standard children’s critical illness cover is automatically included if you take out your own policy and covers children from birth up to their 23rd birthday, with no requirement to be in full-time education. The amount payable is 50% of the amount of cover on the main policy, up to a maximum of £25,000. LV will also pay £5,000 towards the cost of a child’s funeral.
  • Cover levels can be increased without medical underwriting if you get married, get a pay increase of 10% or more, have a baby or adopt a child, increase your mortgage or get divorced.

Optional benefits provided by LV

Waiver of Premium is available for an additional cost. This means you won’t have to pay your premiums if you are unable to work due to an accident or injury. Waiting periods vary between one month and six months.

Junior Option gives your child the chance to take out a combined life and critical illness policy of their own, up to £25,000, without having to go through medical underwriting if it is within six months of their 23rd birthday.

How much does LV insurance cost?

The tables below show monthly premiums for £250,000 of level term life insurance with LV over a 20-year term.

The figures cover both a non-smoker and smoker in various age groups and premiums have been compared to the cheapest and most expensive in the market.

LV life insurance comparison - £250,000 over 20 years (Non-Smoker)

LV premium Cheapest premium Most expensive premium
25-year-old non-smoker £8.37 £6.03 £9.06
35-year-old non-smoker £12.62 £11.34 £13.09
45-year-old non-smoker £26.91 £23.61 £29.48
55-year-old non-smoker £74.86 £63.62 £77.02

 

LV life insurance comparison - £250,000 over 20 years (Smoker)

LV premium Cheapest premium Most expensive premium
25-year-old smoker £13.26 £9.52 £13.26
35-year-old smoker £24.61 £21.36 £24.61
45-year-old smoker £59.54 £55.98 £72.07
55-year-old smoker £170.25 £162.16 £187.87

 

Keep in mind that the amount you, as an individual, will pay for your monthly life insurance premiums will depend on several factors including your age, your health, whether you smoke, your occupation, how much cover you require and the length of the term. The above figures should therefore only be used as a guideline.

To get a clearer picture of how much you could pay each month, it’s worth talking to an independent insurance specialist who will also be able to advise you on the type of cover that's best for you. Below we explain how you can also qualify for £100 cashback if you decide to take out a life insurance policy.

Best way to buy LV life insurance?

If you’re planning to buy a life insurance policy with LV, it’s worth first speaking to an independent insurance specialist such as LifeSearch*. They can access quotes from all major insurance companies to help you get the best deal, as well as match you with the insurance provider who will view your application more favourably.

Independent specialists can also advise on the best policy for your circumstances, as well as help you calculate how much cover you need. They will also be on hand to help you complete your application form, put your policy into trust, or to help you make a claim in the future. Simply complete this short form* to get a quote. There is no obligation to take out a policy, but if you decide to, you will qualify for up to £100 cashback.

LV life insurance summary

  • Established in 1843.
  • In 2019, LV paid out 99% of life insurance claims and 88% of critical illness claims.
  • Life insurance automatically includes Terminal Illness Cover and can also be combined with Critical Illness Cover.
  • Children’s critical illness cover is automatically included if you take out your own policy.
  • Policyholders benefit from LV Doctor Services which provides easy access to expert medical services.
  • LV life insurance may not necessarily be the cheapest option for you as your monthly premiums will depend on a number of factors.
  • To ensure you get the right policy at the right price, it’s important to shop around and compare deals carefully.
  • If you buy a life insurance policy through LifeSearch* you will receive up to £100 cashback. Simply click on the link and fill in the short form to be called back at a time that suits you.

 

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 

 

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Alternatively, Hargreaves Lansdown, one of the UK’s largest firms providing restricted financial advice, is offering a £200 John Lewis voucher* to new clients.