TL;DR
Your ability to earn an income is your most valuable financial asset. It underpins your entire lifestyle—from your mortgage and bills to your family's future aspirations. Yet, what would happen if an illness or injury suddenly stopped you from working for months, or even years?
Key takeaways
- The Reality of Long-Term Sickness: According to the Office for National Statistics (ONS), over 2.8 million people in the UK were economically inactive due to long-term sickness in late 2023, a record high.
- SSP is Not Enough: Statutory Sick Pay provides a basic level of support that is insufficient for most households to maintain their financial commitments.
- The Foundation of Financial Security: Without a reliable income, all other financial plans, from pensions to investments, are at risk. Income protection acts as the foundation, ensuring your financial house remains standing even if you can't work.
- 'Own Occupation' Definition as Standard: LV= provides one of the strongest definitions of incapacity in the market, ensuring you can claim if you are unable to perform your specific job role.
- Exceptional Claims Record: In 2023, LV= paid 95% of its income protection claims, totalling over £29 million. This high payout rate provides immense confidence that they will be there when you need them.
Your ability to earn an income is your most valuable financial asset. It underpins your entire lifestyle—from your mortgage and bills to your family's future aspirations. Yet, what would happen if an illness or injury suddenly stopped you from working for months, or even years?
For many, Statutory Sick Pay (SSP) would offer a minimal safety net, currently providing just £116.75 per week for a maximum of 28 weeks. This is a fraction of the average UK salary and is unlikely to cover essential outgoings.
This is where income protection insurance becomes the cornerstone of a robust financial plan. It provides a replacement monthly income, giving you and your family peace of mind and financial stability when you need it most.
Among the UK's leading providers, LV= (Liverpool Victoria) stands out for its comprehensive cover, member-focused ethos, and exceptional claims service. This guide provides a definitive look at LV= Income Protection, exploring every facet of their policies to help you make an informed decision.
A comprehensive guide to LV= income protection – own occupation wording, benefit options, deferment periods, exclusions, underwriting and claims process
As expert protection advisers, we regularly recommend LV= to our clients. Their commitment to paying claims, strong policy definitions, and member-first approach make them a formidable choice in a competitive market. In this guide, we'll dissect their offering, giving you the clarity needed to secure your financial future.
What is Income Protection and Why is it Essential?
Income Protection, sometimes known as 'IP' or 'Personal Sick Pay', is an insurance policy designed to replace a significant portion of your lost earnings if you are unable to work due to sickness or an accident.
Unlike Critical Illness Cover, which pays a one-off lump sum for specific serious conditions, income protection provides a regular, tax-free monthly benefit. This payment continues until you are well enough to return to work, your policy term ends, or you retire—whichever comes first.
Key Facts About UK Sickness Absence:
- The Reality of Long-Term Sickness: According to the Office for National Statistics (ONS), over 2.8 million people in the UK were economically inactive due to long-term sickness in late 2023, a record high.
- SSP is Not Enough: Statutory Sick Pay provides a basic level of support that is insufficient for most households to maintain their financial commitments.
- The Foundation of Financial Security: Without a reliable income, all other financial plans, from pensions to investments, are at risk. Income protection acts as the foundation, ensuring your financial house remains standing even if you can't work.
Essentially, an income protection policy is your personal financial safety net, providing a salary when your employer's support ends or if you're self-employed and have no support at all.
Why Choose LV= for Your Income Protection?
LV=, or Liverpool Victoria, is one of the UK's largest and most respected financial mutuals. Being a mutual means they are owned by their members (policyholders) rather than external shareholders. This structure allows them to reinvest profits into better products, lower prices, and superior customer service.
Here’s why LV= is a top-tier choice for income protection:
- 'Own Occupation' Definition as Standard: LV= provides one of the strongest definitions of incapacity in the market, ensuring you can claim if you are unable to perform your specific job role.
- Exceptional Claims Record: In 2023, LV= paid 95% of its income protection claims, totalling over £29 million. This high payout rate provides immense confidence that they will be there when you need them.
- Member-Centric Benefits: As a mutual, LV= offers a range of valuable support services beyond the financial payout, including remote GP access and rehabilitation support.
- Flexibility and Choice: Their policies can be tailored with various deferment periods, benefit terms, and optional extras to suit your specific needs and budget.
- Award-Winning Provider: LV= consistently wins industry awards for their protection products and claims service, reflecting their quality and reliability.
At WeCovr, we believe that the strength of the insurer and the clarity of their policy wording are just as important as the price. LV='s track record and product design make them a provider we trust for our clients.
Deep Dive: LV= Income Protection Core Features (2026)
Understanding the key components of an LV= policy is crucial. Let's break down the main features you'll need to consider when setting up your cover.
| Feature | LV= Offering | What It Means For You |
|---|---|---|
| Definition of Incapacity | 'Own Occupation' as standard | You can claim if you're unable to do your specific job, even if you could do a less skilled or lower-paid one. This is the gold standard. |
| Benefit Amount | Up to 60% of your pre-tax annual earnings (up to a maximum of £250,000 per year). | Provides a substantial, tax-free monthly income to cover your living costs. The cap prevents over-insurance. |
| Deferment Period | 4, 8, 13, 26, or 52 weeks. | This is the 'waiting period' before payments begin. You can align it with your employer's sick pay or savings. |
| Benefit Payment Term | Limited (2 years per claim) or Full Term (until policy expiry). | Choose between a lower-cost, short-term option or comprehensive long-term protection right up to retirement age. |
| Premium Type | Guaranteed premiums as standard. | Your monthly premium is fixed for the life of the policy and will not increase unless you choose to increase your cover. |
| Policy Cease Age | Cover can run until any age from 50 to 70. | You can match your cover to your planned retirement age. |
Understanding LV='s Definition of Incapacity: 'Own Occupation' Explained
This is arguably the most important feature of any income protection policy. The definition of incapacity determines the circumstances under which you can make a valid claim. Cheaper policies often use inferior definitions that can make it harder to claim successfully.
LV= uses the 'Own Occupation' definition as standard. This means:
LV= will consider you incapacitated and eligible to claim if, due to illness or injury, you are unable to perform the material and substantial duties of your own specific occupation.
This provides the highest level of certainty, especially for professionals and skilled workers whose ability to work depends on specific physical or mental capabilities.
Real-Life Scenario: The 'Own Occupation' Advantage
- The Claimant: A 45-year-old dental surgeon earning £120,000 per year. She has an LV= Income Protection policy.
- The Incident: She develops a permanent, subtle tremor in her right hand.
- The Impact: While she is otherwise healthy and could perform a role like academic teaching or dental consulting, she can no longer safely perform the intricate procedures required of a surgeon.
- The Outcome with LV=: Under the 'own occupation' definition, she is unable to do her job. LV= accepts her claim and begins paying her a tax-free monthly income, allowing her to retrain for a new role without financial pressure.
If her policy had a weaker 'Suited Occupation' definition, the insurer could argue that she can still work as a consultant and might reject her claim. This is why the 'own occupation' definition offered by LV= is so valuable.
LV= Income Protection: Added-Value Benefits and Support Services
Modern protection is about more than just money. LV= provides a suite of support services designed to help you stay healthy, get better faster, and navigate difficult times. These are available to you from the moment your policy starts, not just when you claim.
- LV= Doctor Services: This gives you and your family 24/7 access to a UK-based remote GP via phone or video call. It can help you get faster diagnoses, second opinions, and private prescriptions without waiting for a local GP appointment.
- Health and Wellbeing Support: Access to a team of experts for support with mental health, physiotherapy, and even legal advice. This proactive service can help prevent a minor issue from becoming a long-term problem that stops you from working.
- Rehabilitation and Back-to-Work Support: If you do need to claim, LV='s in-house rehabilitation team works with you, your GP, and your employer to create a personalised plan to help you recover and return to work when you're ready.
- Member Support Fund: In exceptional circumstances, LV= may be able to provide a one-off grant from its Member Support Fund to help with financial hardship, such as paying for home adaptations or specialist equipment not covered by the NHS.
These benefits demonstrate LV='s commitment to being a long-term partner in your wellbeing, not just an anonymous insurer.
Customising Your LV= Policy: Optional Extras
While the core LV= policy is comprehensive, you can add optional features to further tailor the cover to your needs.
- Increasing Cover (Indexation): This is a vital option to protect your benefit from the eroding effects of inflation. Your cover amount (and premium) will increase each year in line with the Retail Prices Index (RPI), ensuring its real-terms value is maintained over the life of the policy.
- Fracture Cover: For an additional premium, this provides a one-off lump sum payment (from £2,200 to £4,400 depending on the fracture) if you suffer one of a list of specified bone fractures. This can provide immediate cash to help with short-term costs while you wait for your main benefit to start.
- Parent and Child Cover: This is a unique and valuable feature. If your child suffers a specified serious illness, or if you need to take time off work to care for a child with a less serious condition, LV= will pay you a lump sum benefit to help you manage financially during that difficult time.
- Death Benefit: A small lump sum (typically around £10,000) is paid out if you die during the term of the policy. This can help your family with immediate costs like funeral expenses.
- Waiver of Premium: This is included as standard. If you make a successful claim, LV= will 'waive' (pay for) your premiums for you while you are receiving benefits. This ensures your policy remains active without you having to fund it from your claim payments.
How Much Does LV= Income Protection Cost? Factors Influencing Your Premiums
The cost of income protection is highly personal and depends on the level of risk you present to the insurer. While LV= is competitively priced, especially given its quality, your final premium will be determined by several factors.
- Your Age: The younger you are when you take out the cover, the cheaper the premiums will be.
- Your Health and Lifestyle: Insurers will ask about your medical history, your family's medical history, your height, weight (BMI), and whether you smoke or vape.
- Your Occupation: An office-based accountant will pay less than a construction worker, as their job carries a lower risk of injury. LV= categorises jobs into different risk classes.
- Your Chosen Benefit Amount: The more cover you need each month, the higher the premium.
- Your Deferment Period: A longer deferment period (e.g., 52 weeks) will result in a significantly lower premium than a short one (e.g., 4 weeks), as you are taking on more of the initial risk yourself.
- Your Policy Term: Covering yourself until age 70 will be more expensive than covering yourself until age 60, as the risk of illness increases with age.
- Optional Extras: Adding indexation or other benefits will increase the base premium.
Illustrative Monthly Premiums for LV= Income Protection
The table below shows example monthly costs for a non-smoking, office-based professional seeking £2,500 of monthly cover until age 65. These are for illustration only.
| Age | Deferment Period: 13 Weeks | Deferment Period: 26 Weeks |
|---|---|---|
| 30 | £38 | £31 |
| 40 | £65 | £54 |
| 50 | £115 | £98 |
Premiums are illustrative (Feb 2026), based on a standard health profile with guaranteed premiums. Your actual quote will depend on your individual circumstances.
The best way to get an accurate figure is to get a personalised quote. An adviser at WeCovr can run a comparison for you, ensuring the policy structure is perfectly aligned with your needs and budget.
Income Protection for Business Owners, Directors, and the Self-Employed
For those who don't have the safety net of an employer's sick pay scheme, income protection is not just important—it's critical. LV= offers excellent solutions for business owners and the self-employed.
For the Self-Employed and Freelancers
If you work for yourself, you have zero sick pay. An income protection policy is your only way to create a financial buffer.
- How LV= Assesses Income: For self-employed individuals with fluctuating earnings, LV= will typically look at your average income over the last 1-3 years to determine the maximum benefit you can insure. It's crucial to keep accurate accounts.
- Flexibility: The choice of deferment periods allows you to build a plan that kicks in just as your business or personal savings start to run low.
For Company Directors
Company directors have a choice between a personal policy and a company-owned one, known as Executive Income Protection.
- Personal Income Protection: The director pays for the policy from their post-tax income (salary and dividends). The policy is owned by them personally, and any benefit is paid directly to them, tax-free.
- Executive Income Protection: The limited company owns and pays for the policy. This is often a more tax-efficient route. The benefit is paid to the company, which then pays it to the director through the payroll (PAYE), subject to income tax and National Insurance.
LV= offers a dedicated Executive Income Protection plan which is a popular choice for small and medium-sized businesses.
Comparison: Personal vs. Executive Income Protection
| Feature | Personal Income Protection | LV= Executive Income Protection |
|---|---|---|
| Who Pays? | The individual (from their net income) | The limited company |
| Tax on Premiums? | No tax relief for the individual | An allowable business expense for the company (usually) |
| Tax on Benefit? | Paid to the individual, tax-free | Paid to the company, then to the director via PAYE (taxable) |
| Ownership | Owned by the individual | Owned by the company |
| Best Suited For | Sole traders, partners, employees, and directors who prefer personal ownership. | Company directors looking for a tax-efficient way to provide protection. |
An adviser can help you and your accountant decide which structure is most appropriate and cost-effective for your circumstances.
The LV= Underwriting Process: What to Expect
Underwriting is the process an insurer uses to assess your application and determine the risk you pose. It's vital to be completely open and honest during this stage.
- The Application: You will complete a detailed application form covering your health, lifestyle, occupation, and finances. At WeCovr, we help you complete this accurately to ensure a smooth process.
- Full Disclosure is Key: Under the Consumer Insurance (Disclosure and Representations) Act 2012, you have a duty to take "reasonable care" to answer all questions fully and accurately. Withholding information, even accidentally, can lead to your policy being cancelled or a future claim being denied.
- Request for Medical Evidence: For higher benefit amounts, older applicants, or those with a history of medical issues, LV= may request more information. This could be a report from your GP (a GPR), a nurse screening, or specific tests like a blood test or ECG. This is a standard part of the process.
- The Underwriting Outcome: Once LV= has all the information, they will issue a decision:
- Standard Terms: Your application is accepted at the quoted price.
- A Premium Loading: Your premium is increased to reflect a higher risk (e.g., a high BMI or a controlled health condition).
- An Exclusion: Your policy is accepted, but with an exclusion for a specific pre-existing condition (e.g., claims related to a past back injury might be excluded).
- Postponement or Decline: In some cases, cover may be postponed (e.g., pending surgery) or, rarely, declined.
Understanding Exclusions: What LV= Income Protection Won't Cover
All insurance policies have exclusions. These are not hidden traps but are necessary to keep policies affordable and to exclude risks that are uninsurable.
Common General Exclusions:
- Illness or injury as a result of illegal acts, drug or alcohol misuse.
- Self-inflicted injuries.
- Illness arising from war, terrorism, or civil commotion.
- Normal, uncomplicated pregnancy and childbirth.
Specific Exclusions:
The most common type of exclusion is one applied during underwriting related to a pre-existing medical condition. If you have a history of recurring back pain, LV= might offer you a policy but with an exclusion for any claims related to musculoskeletal issues of the spine.
It's crucial to read and understand any specific exclusions on your policy documents before your cover starts.
Making a Claim with LV=: A Step-by-Step Guide
The moment of a claim is the moment of truth for any insurer. LV= has built a reputation for having a supportive, efficient, and empathetic claims process.
- Step 1: Contact LV=: As soon as it looks like your illness or injury will prevent you from working beyond your chosen deferment period, you should contact the LV= claims team.
- Step 2: Complete the Claim Form: LV= will send you a claim pack. You will need to provide details about your condition, your job, and your income. You will also need to authorise them to obtain medical evidence from your doctor.
- Step 3: Assessment: An experienced LV= claims assessor will be assigned to your case. They will review all the information and may speak with you or your doctor to fully understand your situation. Their goal is to find reasons to pay the claim, not to reject it.
- Step 4: Decision and Payment: Once the claim is approved, your tax-free monthly payments will begin at the end of your deferment period and will be paid monthly in arrears.
- Step 5: Ongoing Support: While you are on a claim, LV= will stay in regular contact. Their rehabilitation team will offer proactive support to help you on your road to recovery.
LV='s high payout statistics and focus on claims support provide powerful reassurance that your policy will do its job when you need it to.
How WeCovr Can Help You Secure the Right LV= Policy
Choosing the right income protection policy is one of the most important financial decisions you can make. Navigating the options alone can be daunting. As independent protection specialists, WeCovr provides expert guidance to make the process simple and effective.
- Expert Advice: We understand the nuances of LV='s products and can help you decide if they are the right fit for you.
- Market Comparison: We compare LV= against other leading UK insurers like Aviva, Royal London, and The Exeter, ensuring you get the best possible cover at the most competitive price.
- Application Support: We manage the entire application process for you, ensuring the forms are completed accurately and liaising with the LV= underwriters on your behalf to secure the best possible terms.
- No Extra Cost: Our expert advice and support service is completely free. You pay the exact same premium as you would by going direct, but with the added value of our professional guidance.
- Holistic Wellbeing: As a WeCovr client, you'll receive complimentary access to our AI-powered nutrition and calorie tracking app, CalorieHero, helping you manage your health proactively.
Whole of Life Insurance: A Quick Clarification
While this guide focuses on income protection, clients often ask about other types of cover, particularly Whole of Life insurance. It's important to understand how modern policies work.
In modern UK protection planning, most whole of life policies are pure protection with no cash-in value. If premiums stop, the cover ends and nothing is returned. These plans are transparent, affordable, and ideally suited to covering a future Inheritance Tax (IHT) liability or leaving a guaranteed legacy for loved ones. At WeCovr, we focus on these straightforward protection plans—comparing guaranteed cover across the market.
This is very different from older types of policies. Older investment-linked or with-profits whole of life policies worked differently. Part of each premium funded the life cover, while the rest was invested. These built surrender values over time but were often complex, expensive, and dependent on unpredictable investment performance. Early surrender values were frequently lower than the total premiums paid.
Your Questions Answered: LV= Income Protection FAQs
Can I get LV= income protection if I have a pre-existing medical condition?
Is the money from an LV= income protection claim taxable?
What happens if I change jobs after taking out my LV= policy?
Do I still need income protection if I have sick pay from my employer?
Secure Your Financial Future Today
Your income is the engine of your financial life. An LV= Income Protection policy is the best-in-class insurance for that engine, ensuring that if you are forced to stop work through illness or injury, your financial world doesn't stop with you.
With its 'own occupation' definition, excellent member benefits, and a proven track record of paying claims, LV= offers the peace of mind you and your family deserve.
Ready to protect your most valuable asset? Contact WeCovr today. Our expert advisers will provide a free, no-obligation comparison quote and help you build an LV= policy that's perfectly tailored to your needs and budget.
