LV= has confirmed it is making its payment break option permanent to maintain support for vulnerable customers.
The payment holiday was launched during the pandemic and last October protection proposition and marketing director Justin Harper told Health & Protection it had been so well received that making it permanent was the right thing to do.
Since April 2020, more than 300 customers have benefited from the payment break option, LV= said.
Self-employed workers accounted for 93% of eligible members using the option, and would have no state benefit support or other employee benefits if they were unable to work due to illness or injury.
The payment break enables vulnerable members with protection policies to stop paying premiums for a limited period without losing cover.
Payment breaks are offered a month at a time, for up to three months with no requirement for premiums to be repaid.
Existing members that qualify can still make a claim in the usual way, as their cover will remain in place in line with the terms and conditions of their policy.
In a statement released by the mutual today, Harper (pictured) said: “LV= payment breaks were developed with vulnerable customers in mind, allowing us to step in quickly at the height of the pandemic to assist those facing financial difficulties.
“It is crucial in times of financial hardship that policyholders continue to have access to the support they need and are able to keep their valuable existing cover in place, which we’re able to provide through our payment break option.
“We continue to embed vulnerable customer considerations into our culture, practices and processes, ensuring we support advisers and their more vulnerable clients.
“This is even more relevant as we see many households across the UK struggling to contend with increasing costs for their food, energy and fuel. The extension of our payment break is a tangible example of translating those considerations into meaningful action for our members,” he added.
