The new plan, titled ‘Life & Critical Illness’, includes 38 full payment conditions plus terminal illness and two additional payment conditions.
Child cover is an optional add on. Nine of the conditions pay an extra 50% – up to £200,000 – if caused by an accident.
The optional child cover mirrors the existing enhanced children option which commences at birth and ends on the 23rd birthday. It does insist on a survival period.
The child cover comprises 57 conditions, plus terminal illness, all paying the lower of £35,000 or 50% of the adult cover.
Additionally, there are 18 payment conditions paying the lower of £15,000 or 25% of the adult cover.
If child cover is included, any female life assured is covered for a fixed £5,000 if one of six pregnancy complications occurs.
There are 10 conditions where, if the cause is accidental, the payment is doubled. Additionally, there are three conditions where diagnosis alone will double the payment.
Furthermore, a claim for child cancer or cancer-in-situ provides for an immediate, non-refundable payment of £1,000. There is also a fixed £5,000 child funeral benefit.
A spokesperson for CIExpert, said: “Having a second string to its bow ensures that the LV= plans will appeal to all facets of the adviser market, from the ‘sell it cheap’ brigade to those who focus on value and quality.
“Having child critical illness as an option enables the provision of comprehensive child cover whilst retaining a low cost for the basic plan, this could prove to be an important differentiator.
“One negative is the failure to easily differentiate between the new plan and the existing high quality plan.
“This new budget plan is called ‘Life and Critical Illness’ whereas the current comprehensive version is to be renamed ‘Life & Enhanced Critical Illness’.
“The various portals will use different terms which may confuse advisers initially. Perhaps the using the term ‘Core’ for the basic plan might have been more descriptive?
“Nonetheless, this plan will be an important player in this segment of the market, particularly when the superior child cover is included.”
Justin Harper, propositions and marketing director at LV=, added: “These latest improvements to LV=’s critical illness proposition allow advisers and their clients to select more relevant and tailored coverage for their needs.
“Conditions such as cancer, heart attack or a stroke can have a devastating financial and emotional impact on families. By focussing on the most claimed-for conditions, we are launching a more budget-conscious alternative to our enhanced version.
“We’re also offering more flexibility around children’s cover, giving clients the option to add and remove this at any time – helping them achieve financial resilience as their lifestyles and priorities change.
“Our latest development is well-timed to respond to increasing levels of health awareness and provides a new more affordable protection option, as many households experience increases to their costs of living.
“LV= research found that 77% of 25-44 year olds found that the pandemic had increased awareness of their own physical health. Despite this, only 22% own a critical illness product, with cost being cited as a major reason.
“Not only does our new product offer essential cover at a more affordable cost, it also includes value-added benefits such as LV= Doctor Services – providing everyday tangible and convenient support for customers. Customers can access Remote GP 24/7 and Second Opinion features by using an app or over the phone.”
