LV= has paid out more than £309,000 for a single income protection (IP) claim lasting more than 35 years.
The details were released alongside the insurer’s latest IP claims data which showed it paid more than £9.4m in claims between January and July 2021, supporting over 1,500 policyholders aged between 23 and 64.
It also noted that more than 60% of IP applications were accepted without needing further evidence while claims volumes have returned to lower levels as the vaccination programme is successfully rolled out.
Brain heamorrhage at 27
The claim LV= highlighted is being paid to a woman who has been unable to return to work since 1987. She was diagnosed with epilepsy in her 20s after suffering from a brain haemorrhage.
She was 27 when this took place and the income protection policy had only been in place for 16 months. She will continue to receive pay-outs from LV= until 2023, when the policy term ends.
Commenting on the claim, Justin Harper, proposition and marketing director at LV=, (pictured) said: “This claim lasting 35 years just goes to show the true power of income protection.
“Not only does it demonstrate that life changing injuries and conditions can strike at any age, but they can be long lasting too.
“Credit must go to the adviser who talked to their client about protecting their income and for putting index-linked cover in place. The claim started out at £93 a week and has risen nearly threefold over time, to a current weekly payout of over £270.
“Financial and practical support can make a positive difference in times of hardship and reinforces again the real value of sound financial advice.”
Harper said he hoped stories like this could offer advisers more encouragement and confidence to talk to new and existing clients about their protection needs.
The report also reveals that:
- For IP claims, cancer, mental health, and musculoskeletal conditions were the top three causes of claim. The average age of IP claimants was 46 years and the average monthly claim benefit was £1,500.
- For Personal Sick Pay, the most common causes of claim were musculoskeletal conditions, fractures and Covid-19. The average age of these claimants was 41 and the average monthly claim benefit reached £865.
- LV= has experienced a number of fracture cover claims, paying out £14,300 so far in 2021.