LV= Life Insurance in 2025 Still a Strong Choice
For over 180 years, Liverpool Victoria, or LV= as it’s more commonly known, has been a cornerstone of the UK’s financial services landscape. As a mutual, owned by its members rather than shareholders, LV= has built a formidable reputation for trust, customer focus, and providing robust protection policies. But in the fast-paced and competitive insurance market of 2025, does LV= still hold its own as a leading provider of life insurance, critical illness cover, and income protection?
The short answer is a resounding yes. LV= continues to offer some of the most comprehensive and highly-rated protection products in the UK. However, the 'best' insurer is never a one-size-fits-all solution. Your personal circumstances, health, budget, and what you need the cover to achieve are all critical factors.
This is where we come in. This guide provides an in-depth, expert look at what LV= has to offer in 2025, from its core life cover to its specialist business protection. We'll break down the key features, explore the valuable member benefits, and see how LV= stacks up against other major players in the market.
WeCovr looks at LV=’s life cover options and how they compare with other UK insurers
Navigating the world of life insurance can feel daunting. With a myriad of products, providers, and jargon, it's easy to feel overwhelmed. LV='s strength lies in its clarity and the comprehensive nature of its policies. As a mutual, its profits are reinvested into the business to benefit its members, which often translates into better products, service, and more competitive claims handling.
Let's dissect the primary protection policies offered by LV= to understand who they are for and the problems they solve.
LV='s Core Protection Portfolio:
- Life Protection: The foundational life insurance product, available as term insurance.
- Life and Critical Illness Cover: A combined policy offering a financial cushion against death or serious illness.
- Income Protection: A crucial policy designed to replace a portion of your salary if you're unable to work.
- Family Income Benefit: An alternative to a lump sum policy, providing a regular, tax-free income stream for your loved ones.
- Business Protection: Specialist cover for company directors and business owners, including Key Person and Executive Income Protection.
Each of these products serves a distinct purpose. The right choice for you will depend entirely on your personal and financial situation. A young family might prioritise Family Income Benefit, while a self-employed professional will likely see Income Protection as non-negotiable.
A Closer Look at LV= Life Insurance Products in 2025
Let's dive deeper into the specifics of LV='s personal protection offerings. Understanding the mechanics of each policy is the first step toward making an informed decision.
Life Protection (Term Insurance)
This is the most straightforward type of life insurance. It’s designed to pay out a fixed, tax-free lump sum if you pass away during the policy term. The primary purpose is to clear debts, such as a mortgage, and provide a financial legacy for your family.
LV= offers three main types of Life Protection:
- Level Term Assurance: The payout amount (sum assured) remains the same throughout the policy term. This is ideal for covering an interest-only mortgage or providing a specific lump sum for your family's future, regardless of when a claim is made.
- Decreasing Term Assurance: The sum assured reduces over time, broadly in line with a repayment mortgage or other long-term loan. Because the potential payout decreases, the premiums are typically lower than for level cover, making it a cost-effective way to protect a specific large debt.
- Increasing Term Assurance: The sum assured increases each year to help protect its value against inflation. This ensures that the payout your family receives in 15 years has the same real-terms purchasing power as it does today. Premiums for this type of cover also increase over the term.
Key Features of LV= Life Protection:
- Terminal Illness Cover: Included as standard. This allows for an early payout of the full sum assured if you are diagnosed with a terminal illness and have a life expectancy of 12 months or less. This can provide vital funds for care, getting financial affairs in order, or fulfilling final wishes.
- Joint Life Policies: You can cover two people on one policy, which typically pays out on the first death. This is common for couples looking to cover a joint mortgage. However, it's worth noting that once a claim is made, the policy ends, leaving the surviving partner without cover. Two single policies can sometimes offer more comprehensive, long-term protection.
- Flexibility: LV= policies often include options to increase your cover without further medical questions at key life events, such as getting married, having a child, or taking out a larger mortgage.
Life and Critical Illness Cover
While life insurance protects your family financially after you're gone, what happens if you suffer a life-altering illness but survive? This is where Critical Illness Cover (CIC) comes in.
An LV= Life and Critical Illness policy pays out a lump sum on either death or the diagnosis of a specified critical illness, whichever comes first. This money can be a lifeline, helping to:
- Cover lost income during treatment and recovery.
- Pay for private medical treatments or specialist care.
- Adapt your home (e.g., install a ramp or stairlift).
- Clear a mortgage or other debts, reducing financial pressure.
LV='s Critical Illness Proposition:
LV= is widely regarded for the quality of its critical illness cover. They offer both a standard and an enhanced version of their policy.
| Feature | LV= Standard CIC | LV= Enhanced CIC |
|---|---|---|
| Total Conditions | Covers around 50 conditions | Covers over 85 conditions |
| Focus | Core conditions like heart attack, stroke, cancer | Broader coverage including additional and less severe conditions |
| Partial Payments | Included for less severe illnesses | More extensive list of partial payment conditions |
| Children's Cover | Included as standard | Enhanced children's cover with higher payout amounts |
A key strength of LV= is the clarity and fairness of its definitions. In 2023, the Association of British Insurers reported that 91.3% of all critical illness claims were paid, with the main reasons for decline being that the definition of the illness in the policy wasn't met. LV='s robust definitions and high payout rates provide significant peace of mind.
Children's Critical Illness Cover: This is automatically included and is a major selling point. If your child is diagnosed with one of the specified conditions, LV= will provide a payout (typically up to £25,000 or 50% of the adult's sum assured) to help you take time off work and manage the associated costs.
Family Income Benefit
Instead of a single large lump sum, Family Income Benefit (FIB) is designed to pay out a regular, tax-free monthly or annual income to your family. This income is paid from the point of claim until the end of the policy term.
Why choose FIB?
- Budgeting: It replaces a lost salary in a manageable way, making it easier for your family to handle day-to-day bills and outgoings.
- Cost-Effective: Because the total potential payout decreases as the policy term progresses, FIB is often significantly cheaper than a level term policy with a large lump sum.
- Peace of Mind: It removes the pressure on your loved ones to manage and invest a large sum of money during a difficult time.
Example: Mark, 35, has a young family and wants to ensure their lifestyle is protected until his youngest child is 21. He takes out a 20-year Family Income Benefit policy for £2,500 per month. If Mark were to pass away 5 years into the policy, his family would receive £2,500 every month for the remaining 15 years.
LV= Income Protection: A Safety Net for Your Salary
For most working adults, their income is their most valuable asset. Income Protection (IP) is designed to protect it. If you are unable to work due to illness or injury, an IP policy will pay you a regular, tax-free income until you can return to work, the policy term ends, or you retire.
It is arguably one of the most important forms of insurance, yet it is one of the least purchased. Statistics from the Office for National Statistics show that over 2.8 million people were economically inactive due to long-term sickness in early 2024, a significant increase over recent years. With Statutory Sick Pay (SSP) at just £116.75 per week (2024/25), it's clear that a significant income gap would exist for most households.
Key Features of LV= Income Protection:
- Definition of Incapacity: This is the most critical part of any IP policy. LV= predominantly offers the 'Own Occupation' definition. This means the policy will pay out if you are unable to perform your specific job role. This is the most comprehensive definition and the gold standard in the industry. Cheaper policies may use 'Suited Occupation' or 'Any Occupation' definitions, which are much harder to claim on.
- Deferred Period: This is the waiting period between when you stop working and when the policy starts paying out. Options typically range from 4 weeks to 52 weeks. The longer the deferred period, the lower your premium. You should align this with any sick pay you receive from your employer.
- Benefit Period: This dictates how long the policy will pay out for. LV= offers short-term options (e.g., 1, 2, or 5 years per claim) or a full-term option that pays out right up to your chosen retirement age (e.g., 65 or 68).
- Added Value: LV='s IP policies come with significant added benefits, such as their Fracture Cover, Hospitalisation Benefit, and access to their LV= Doctor Services.
Illustrative Premiums for Income Protection The following are for illustrative purposes only. Your actual premium will depend on your age, health, occupation, and chosen options.
| Deferred Period | Monthly Premium (Approx.) |
|---|---|
| 4 Weeks | £45 |
| 8 Weeks | £38 |
| 13 Weeks | £32 |
| 26 Weeks | £25 |
| 52 Weeks | £18 |
As you can see, aligning your deferred period with your employer's sick pay scheme can result in significant premium savings.
Specialist Cover for Business Owners and the Self-Employed
LV= has a particularly strong proposition for freelancers, contractors, and company directors who don't have the safety net of employee benefits.
For the Self-Employed and Freelancers
Income Protection is not a luxury; it's a necessity. Without employer sick pay, your income stops the moment you are unable to work. An LV= Income Protection policy with an 'Own Occupation' definition provides a robust and reliable safety net, ensuring your personal and business bills can still be paid.
Critical Illness Cover is also vital. A lump sum payout can give you the breathing space to recover without worrying about the immediate financial health of your business.
Executive Income Protection
This is a specific type of income protection policy designed for limited company directors and their employees.
How does it work? The company owns and pays for the policy. If the insured director or employee is unable to work, the benefit is paid to the company, which then typically pays it to the individual via PAYE.
Key Advantages:
- Tax Efficiency: The premiums are usually considered an allowable business expense, making it more tax-efficient than a personal policy.
- Higher Cover Limits: It often allows for a higher level of cover than personal policies, covering not just salary but also dividends and P11D benefits.
- Attraction & Retention: It's a highly valuable employee benefit that can help attract and retain key talent.
Key Person Insurance
What would happen to your business if your top salesperson, technical expert, or you yourself were suddenly unable to work due to death or critical illness? Key Person Insurance is designed to protect the business itself from this financial fallout.
The policy pays a lump sum to the business, which can be used to:
- Recruit and train a replacement.
- Cover lost profits during the disruption.
- Reassure lenders and investors.
- Clear business loans or debts.
LV= is a major provider in the business protection market, offering flexible and comprehensive solutions tailored to the needs of UK businesses.
LV= Added Value Benefits: More Than Just an Insurance Policy
In 2025, the best insurance policies offer more than just a financial payout. They provide practical, day-to-day support to help you and your family stay healthy. LV='s member benefits are a prime example of this and are available to most policyholders from day one.
LV= Doctor Services typically include:
- Remote GP 24/7: Access to a UK-based GP via video or phone call at any time, from anywhere in the world. This helps you get medical advice quickly without waiting for a local appointment.
- Second Medical Opinion: If you receive a diagnosis, you can get a second opinion from a world-leading specialist to confirm the diagnosis and explore treatment options.
- Prescription Services: Get private prescriptions delivered directly to your door.
- Mental Health Support: Access to a set number of counselling or therapy sessions to support your mental wellbeing.
- Physiotherapy Support: Digital access to physiotherapy assessments and tailored exercise programmes.
These benefits can be invaluable, providing tangible support that helps prevent minor health issues from becoming major ones.
At WeCovr, we echo this commitment to holistic wellbeing. We understand that prevention is just as important as protection. That's why, in addition to finding you the best policy from providers like LV=, we provide our customers with complimentary access to our very own AI-powered calorie tracking app, CalorieHero. It’s our way of going the extra mile, helping you stay on top of your health and nutrition goals.
How Does LV= Compare to Other Major UK Insurers?
While LV= is a top-tier provider, it's crucial to see how they stand against competitors like Aviva, Legal & General, and Zurich. The "best" provider depends on what you value most—be it price, the breadth of critical illness definitions, or added benefits.
Here’s a simplified comparison based on typical market positions in 2025.
| Feature | LV= | Aviva | Legal & General | Zurich |
|---|---|---|---|---|
| Defaqto Rating (CIC) | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ |
| Own Occupation IP | Yes (standard) | Yes (standard) | Yes (standard) | Yes (standard) |
| Core CI Conditions | ~35 | ~35 | ~30 | ~35 |
| Enhanced CI Conditions | ~87 | ~90+ | ~80 | ~85 |
| Claims Payout (Life) | ~97% | ~98% | ~97% | ~98% |
| Claims Payout (CIC) | ~92% | ~93% | ~92% | ~91% |
| Included GP Service | Yes | Yes | Yes | Yes |
| Standout Feature | Member benefits, strong IP | Broadest CI definitions | Price competitive, flexible | High cover limits |
Analysis:
- Quality of Cover: All four are top-tier providers with 5-Star Defaqto ratings for their comprehensive products. LV= and Aviva often compete for the most extensive critical illness lists, but the real difference lies in the fine print of the definitions.
- Price: Legal & General is often one of the most price-competitive insurers for straightforward life cover. However, for more complex needs like high-level income protection or critical illness, LV= often provides superior value for a marginal difference in price. Price is highly individual, which is why comparing quotes is essential.
- Customer Service & Claims: All major insurers have very high claims payout rates for life insurance (typically 97%+). LV='s mutual status and consistent high scores in customer satisfaction surveys give it a strong edge. They are known for their empathetic and efficient claims process.
- Innovation: LV= has been a leader in income protection and adding tangible value through its Doctor Services.
The key takeaway is that you have excellent choices. The role of an expert broker like WeCovr is to analyse your specific needs and run a comprehensive market comparison to find the policy that offers the best combination of price, quality, and features for you.
Wellness & Lifestyle: Proactive Steps to Protect Your Health
An insurance policy is a reactive safety net. Proactive lifestyle choices can reduce your risk of needing it and may even lower your premiums. Here are some simple, evidence-based tips to protect your health.
- A Balanced Diet: Focus on whole foods. The Mediterranean diet, rich in fruits, vegetables, whole grains, and healthy fats, is consistently linked to better cardiovascular health. The NHS recommends at least five portions of fruit and veg a day. Reducing your intake of ultra-processed foods, sugar, and saturated fat can have a profound impact.
- Regular Physical Activity: Aim for at least 150 minutes of moderate-intensity activity (like a brisk walk or cycling) or 75 minutes of vigorous-intensity activity (like running or HIIT) a week, plus strength exercises on two or more days. Regular movement is proven to reduce the risk of heart disease, stroke, type 2 diabetes, and some cancers.
- Prioritise Sleep: Most adults need 7-9 hours of quality sleep per night. Poor sleep is linked to a host of health problems, including a weakened immune system and an increased risk of chronic disease. Create a relaxing bedtime routine and a dark, quiet, cool sleeping environment.
- Manage Stress: Chronic stress can negatively affect your physical and mental health. Incorporate stress-management techniques into your day, such as mindfulness, meditation, spending time in nature, or connecting with friends and family.
Taking small, consistent steps to improve your health is the best long-term investment you can make.
The WeCovr Verdict: Is LV= Life Insurance Right for You in 2025?
After a thorough review, LV= undoubtedly remains a strong choice for life insurance, critical illness cover, and income protection in 2025. Its blend of comprehensive cover, market-leading features, and a member-first ethos makes it a provider we confidently recommend to many of our clients.
Key Strengths of LV=:
- Comprehensive Cover: A robust range of products with excellent, clear definitions, particularly for Critical Illness and Income Protection.
- Gold-Standard Income Protection: Their 'Own Occupation' definition provides a reliable and fair safety net.
- Exceptional Added Value: The LV= Doctor Services offer genuine, practical support from day one.
- Trusted Brand: As a mutual with a history spanning over 180 years and consistently high claims payout rates, they are a name you can trust.
- Business Protection Experts: Strong, tax-efficient solutions for company directors and the self-employed.
Potential Considerations:
- While competitive, LV= may not always be the absolute cheapest option for basic term life insurance. Their focus is on providing high-quality cover that represents excellent value, rather than simply being the lowest price.
Ultimately, the 'right' insurer is the one that best matches your unique needs, health profile, and budget. For many people, especially those seeking high-quality critical illness or income protection cover, LV= will be an outstanding choice.
The insurance market is complex, but you don't have to navigate it alone. Our role at WeCovr is to provide expert, independent advice. We compare policies from LV= alongside all other leading UK insurers to ensure you get the protection you need at the best possible price.
Is LV= a good company for life insurance?
What is the claims payout rate for LV=?
Do I need a medical exam to get LV= life insurance?
Can I put my LV= life insurance policy in trust?
How much does LV= life insurance cost?
What's the difference between LV='s standard and enhanced critical illness cover?
Why life insurance and how does it work?
What is Life Insurance?
Life insurance is an insurance policy that can provide financial support for your loved ones when you or your joint policy holder passes away. It can help clear any outstanding debts, such as a mortgage, and cover your family's living and other expenses such costs of education, so your family can continue to pay bills and living expenses. In addition to life insurance, insurance providers offer related products such as income protection and critical illness, which we will touch upon below.How does it work?
Life insurance pays out if you die. The payout can be in the form of a lump sum payment or can be paid as a replacement for a regular income. It's your decision how much cover you'd like to take based on your financial resources and how much you'd like to leave to your family to help them deal with any outstanding debts and living expenses. Your premium depends on a number of factors, including your occupation, health and other criteria.The payout amount can change over time or can be fixed. A level term or whole of life policy offers a fixed payout. A decreasing term policy offers a payout that decreases over the term of the cover.
With critical illness policies, a payout is made if you’re diagnosed with a terminal illness with a remaining life expectancy of less than 12 months. While income protection policies ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month.
Income protection is particularly helpful for people in dangerous occupations who want to be sure their mortgage will always be covered. Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.
Questions to ask yourself regarding life insurance
Just ask yourself:👉 Who would pay your mortgage or rent if you were to pass away or fall seriously ill?
👉 Who would pay for your family’s food, clothing, study fees or lifestyle?
👉 Who would provide for the costs of your funeral or clear your debts?
👉 Who would pay for your costs if you're unable to work due to serious illness or disability?
Many families don’t realise that life, income protection and critical illness insurance is one of the most effective ways to protect their finances. A great insurance policy can cover costs, protect a family from inheriting debts and even pay off a mortgage.
Many would think that the costs for all the benefits provided by life insurance, income protection insurance or critical illness insurance are too high, but the great news is in the current market policies are actually very inexpensive.
Benefits offered by income protection, life and critical illness insurance
Life insurance, income protection and critical illness insurance are indispensable for every family because a child loses a parent every 22 minutes in the UK, while every single day tragically 60 people suffer major injuries on the UK roads. Some people become unable to work because of sickness or disability.Life insurance cover pays out a lump sum to your family, loved ones or whomever you choose to get the money. This can be used to secure the financial future of your loved ones meaning they would not have to struggle financially in the event of your death.
If it's a critical illness cover, the payout happens sooner - upon diagnosis of a serious illness, disability or medical condition, easing the financial hardship such an event inevitably brings.
Income protection insurance can be very important for anyone who relies on a pay check to cover their living costs, but it's especially important if you’re self-employed or own a small business, where your employment and income is a bit less stable. It pays a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire.
In a world where 1 in 4 of us would struggle financially after just four weeks without work, the stark reality hits hard – a mere 7% of UK adults possess the vital shield of income protection. The urgency of safeguarding our financial well-being has never been more palpable.
Let's face it – relying on savings isn't a solution for everyone. Almost 25% of people have no savings at all, and a whopping 50% have £1,000 or less tucked away. Even more concerning, 51% of Brits – that's a huge 27 million people – wouldn't last more than one month living off their savings. That's a 10% increase from 2022.
And don't even think about state benefits being a safety net. The maximum you can expect from statutory sick pay is a mere £109.40 per week for up to 28 weeks. Not exactly a financial lifeline, right?
Now, let's tackle a common objection: "But I have critical illness insurance. I don't need income protection too." Here's the deal – the two policies apply to very different situations. In a nutshell:
- Critical illness insurance pays a single lump sum if you're diagnosed with or undergo surgery for a specified potentially life-threatening illness. It's great for handling big one-off expenses or debts.
- Income protection, on the other hand, pays a percentage of your salary as a regular payment if you can't work due to illness or injury. It's the superhero that tackles those relentless monthly bills.
Types of life insurance policies
Common reasons for getting a life insurance policy are to:✅ Leave behind an amount of money to keep your family comfortable
✅ Protect the family home and pay off the mortgage in full or in part
✅ Pay for funeral costs
Starting from as little as a couple of pounds per week, you can do all that with a Life Policy.
Level Term Life Insurance
One of the simplest forms of life insurance, level term life insurance works by selecting a length of time for which you would want to be covered and then deciding how much you would like your loved ones to receive should the worst happen. Should your life insurance policy pay out to your family, it would be in a lump sum amount that can be used in whatever way the beneficiary may wish.
Decreasing Term Life Insurance
Decreasing term life insurance works in the same way as level term, except the lump sum payment amount upon death decreases with time. The common use for decreasing term life cover is to protect against mortgage repayment as the lump sum decreases along with the principal of the mortgage itself.
Increasing Term Life Insurance
Increasing term life insurance aims to pay out a cash sum growing each year if the worst happens while covered by the policy. With increasing term life cover amount insured increases annually by a fixed amount for the length of the policy. This can protect your policy's value against inflation, which could be advantageous if you’re looking to maintain your loved ones’ living standards, continue paying off your mortgage in line with its repayment schedule and cover your children’s education fees.
Whole of Life Insurance
Whereas term life insurance policies only pay out if you pass away during their term, whole of life insurance pays out to your beneficiaries whenever this should happen. The most common uses for whole life insurance are to cover the costs of a funeral or as a vehicle for your family's inheritance tax planning.
Family Income Benefit
Family income benefit is a somewhat lesser-known product in the family of life insurance products. Paying out a set amount every month of year to your beneficiaries, it is the most cost-effective way of maintaining your family's living standards to an age where you'd expect them to be able to support themselves financially. The most common use would be for a family with children who are not working yet so are unable to take care of themselves financially.
Relevant Life Insurance
Relevant Life Insurance is a tax-efficient policy for a director or single employee. A simple level term life insurance product, it is placed in a specific trust to ensure its tax efficiency. The premiums are tax deductible and any benefit payable should a claim arise is also paid out tax free, which makes it an attractive product for entrepreneurs and their businesses.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get life insurance early?
👉 Many people are very thankful that they had their life, income protection, and critical illness insurance cover in place before running into some serious issues. Critical illness and income protection insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, bicycles and even bags! Yet our life and health are the most precious things we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy life, income protection, critical illness and private medical health insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of life insurance policies available in the market, including income protection, critical illness and other types of policies most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced FCA-authorised insurance partner experts who are passionate about advising people on financial matters related to life insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable life, income protection, critical illness or private medical health insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
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WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!