Protection specialist LV= will switch its protection business to gender neutral rates on 10 December 2012, and is extending its ‘G Day Guarantee' to ensure all applications received before this date are processed on gender specific rates, ahead of the gender directive coming into force on 21 December 2012.
LV= is also extending its income protection sale, with all new quotes automatically reduced by 5% up to and including 9 December 2012.
Switching to gender neutral rates ahead of the legislation enforcement provides certainty for advisers, and being able to move the G Day Guarantee date from 1 December to 9 December gives advisers even more time to get applications in on gender specific rates.
If an application is in the pipeline, and on 10 December has further medical evidence outstanding, LV= will guarantee the business can still be placed on gender specific rates.
Mark Jones, LV= Head of Protection said: "We have extended our ‘G Day Guarantee' to offer advisers what we believe is the strongest overall gender pipeline strategy in the market. Being able to extend our guarantee period gives advisers an even greater opportunity to secure gender specific rates, and avoids the difficult situation of having to tell clients they need to pay substantially more for the same policy if it isn't processed in time."
LV= recently launched a website dedicated to helping protection advisers ahead of the gender directive and I minus E tax changes. www.LV.com/nomoreguesswork
The LV= ‘G Day Guarantee'
LV= guarantees protection applications received on or before 9 December will be processed on gender specific rates.
LV= will underwrite applications based on the medical information provided by the client at application, and using normal underwriting standards will offer them a premium and terms. If accepted by the client, the application will be put on-risk for the full cover applied for on gender specific rates, before the 21 December deadline. LV= will then seek the additional medical evidence as normal, which must be received within three months of the cover start date.
In the unlikely event that the medical evidence received is materially different to that given at application, LV= will inform the adviser that the terms of the policy will be reviewed, but importantly cover will remain on gender specific rates. To provide as much certainty as possible for advisers, policies will not be adjusted for small differences in medical disclosure.
LV= won't apply the G Day Guarantee to female income protection business, as premiums are set to decrease under gender neutral pricing, or where an adviser instructs LV= not to do so.
Advisers do not need to request that the ‘G Day Guarantee' is applied to protection applications received on or before 9 December. LV= will update the adviser on the progress of the application as normal, and automatically inform the adviser if the guarantee will be activated.
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