LV= has confirmed that it will allow vulnerable policyholders with life insurance, critical illness and income protection cover to take a three-month payment break from their premiums if they are in financial difficulty.

In order to qualify for this support, the policy must have been in force for at least a year, the customer must have a good payment history with less than three months arrears and they must have suffered a significant drop in income.

It is vital that customers speak to their insurer and agree a payment break rather than simply cancelling their direct debits.

The insurer says it is paying for the payment break through its Member Support Fund, prioritising those customers who are most vulnerable. Payment breaks will be agreed for one month at a time up to a maximum of three months.

While members are on a payment break their policy and cover will remain in place, in full. 

Other measures introduced by the insurer to help customers through the covid crisis include increasing non-medical limits by 10 per cent for income protection, personal sick pay and critical illness cover, boosting the level of cover policyholders can apply for without needing a further GP report, tele-interview or medical screening and trialling virtual medical screening for life-only applications that are above the non-medical underwriting limit where mild disclosures have been made.

It has also extended the hours of its remote GP service through Square Health to 24/7.

 LV= director of protection Debbie Kennedy says: “As a modern mutual, LV= believes that protection should be about more than simply making a payment when a member makes a claim. 

“There is a strong link between financial and mental health and vulnerability, and introducing the option of a payment break during these particularly uncertain times means we can offer more support and reassurance when members are at their most vulnerable.

“Dealing with a pandemic is certainly a challenge for the protection market. 

“Covid-19 means we’re constantly reviewing our current practices and procedures. 

“We will do all we can to look after our members and financial advisers through these difficult times.  

“With the payment break we are able to prioritise additional financial support to those existing members that need it most and, importantly, keep their value protection cover in place.”