LV= launches simple IP

Aimed at those who would not seek financial advice or buy full Income protection, the product is initially being marketed to LV='s general insurance customers, with a full launch direct to consumers or through corporate partners in the coming months.

Sick Pay Insurance is designed for people aged between 17 and 45 who want to protect themselves financially against being unable to work due to sickness, or an accident. People are able to buy comprehensive cover online, accompanied by simple literature with no medical questioning.

Mark Jones, LV= Head of Protection, said: "We want to help raise the profile of the need for people to protect their income, with a simple, quality and good value proposition.
"Our aim is for Sick Pay Insurance to sit very much in the retail space, and feel similar to buying something from a major online retailer.

"We've spent a lot of time making the buying process clear and simple. This includes interactive questions to help people understand what they are covered for, and transparent examples of when a claim can and cannot be made."

Apart from five occupations, people can be covered under ‘own' job - the easiest occupation definition to claim on. The cost of cover is the same for everyone, and the amount of cover people can take out is based on the number of hours they work.

No existing sick pay, insurance pay-outs, or any state benefits are taken into account. Customers can choose a fixed amount of cover between £500 and £1000 per month.
Once someone has been unable to work for four weeks, Sick Pay Insurance can pay out for up to a total of 12 months, and multiple claims can be made, even for the same condition.

Apart from medical conditions the customer has suffered in the last two years, there aren't any types of accident or sickness that won't be paid out for.

Cover automatically runs until age 70, and premiums are guaranteed for the first five years. LV= cannot cancel the policy or change the terms or conditions of the cover in place at any time.