The discount will be effective across the board, and included automatically on all quotes from now until the end of the year.
This new discount is part of LV=’s ‘top five’ talking points, an initiative designed to help advisers encourage clients to consider income protection, and to celebrate its recent 5 Star Defaqto rating.
Mark Jones, LV= head of protection, said: “We’ve had a strong year for IP sales so far in 2010, and we want to help continue this momentum. People often believe income protection will be more expensive than it is, so this discount is one of many good reasons for advisers to kick-start a conversation with their clients to think about this type of cover.
“Year-on-year we see the income protection sales shrink, with providers fighting for market share rather than the market growing. While we understand it isn’t all about price, we want to try to help the market expand by finding ways to encourage more people to consider protecting their income, in this instance, by offering lower-cost access to a quality product.”
LV=’s ‘top 5′ talking points for advisers:
1. We insure our cars, phones, and even our Sky box in case they stop working, but often not ourselves. With over 2.2m people in the UK unable to work due to long-term sickness people are just as prone to ‘breaking’ and the financial consequences can be much more severe
2. It’s a lot more likely someone will be off long-term sick than die or suffer a critical illness during working life. Income protection is the one insurance that everyone should have, yet more people have life cover or critical illness cover
3. Nearly everyone has long term financial commitments and income protection provides long-term protection to cover these
4. Most people couldn’t survive financially on an income of around £5,000 a year, which is what the state provides for long-term sickness
5. It’s becoming increasingly hard to qualify for state benefits. In the first year of The Government’s employment support allowance only 6% of claimants were deemed unable to work, compared to 83% under the previous incapacity benefit. It has become essential that people have their own financial protection in place.