LV= has announced how it will manage amendments to protection policies after the EU gender directive deadline.
It stated that policies would remain on gender-specific rates for most amendments, including use of guaranteed insurability option or a change in the amount of cover.
And clients with reviewable or inflation-linked cover will also remain on gender-specific rates if their premium changes.
But if a new type of cover is added to a policy, for example, a new contract will be formed and LV= will offer a gender-neutral premium.
Mark Jones, head of protection at LV=, said: "We are adopting a fair and sensible approach to how we treat policy amendments once the gender directive is in force. We want to assure advisers that a policy won't revert to neutral rates further down the line if a simple change needs to be made.
"This will help avoid the possibility of policies lapsing, or cover not keeping pace with people's needs, by not increasing premiums for reasons an adviser will find difficult to justify to clients."
Changes that would not result in a change to gender-neutral rates include; increasing or decreasing cover amount; extending or shortening the term; switching between level cover and inflation-linked cover; removing waiver premium option; removing one of the joint lives assured; notifying a change of occupation; changing the deferred period; buying back life cover following a CI claim.
Amendments that would switch the policy to gender-neutral rates are; changing from standalone critical illness to combined CI and life; changing reviewable to guaranteed premiums, or vice versa; switching from budget to full income protection, or vice versa; and splitting a joint life policy into two separate plans.
LV= has guaranteed that applications received on or before 9 December will be processed on gender-specific rates.
