LV= is reintroducing day one and week one waiting periods for self-employed customers applying for its Personal Sick Pay (PSP) product – returning to its pre-Covid position.
However, a temporary Covid exclusion for symptoms lasting under four weeks will remain for PSP applicants.
This means that a claim will not be paid during that time if it is due to symptoms of coronavirus, respiratory tract infection, cold or flu. If the symptoms are more serious and last beyond four weeks, the claim will be considered and can be backdated to reflect this, LV= added.
The insurer noted restrictions on short waiting periods were adopted by many protection providers in response to the pandemic and said it was the first to remove restrictions for traditional workers last year.
LV= told Health & Protection its only remaining Covid-related practice is to postpone applications for anyone diagnosed or suffering with Covid-19 at point of application until they have recovered or passed self-isolation.
Self-employed finances worsening
LV= also said its latest Wealth and Wellbeing Monitor results, which surveys 4,000 UK adults every quarter, revealed self-employed workers were struggling financially or had seen their finances worsen.
One in five self-employed people described their current financial situation as ‘struggling’, while a third of self-employed workers said their finances had worsened in the past three months compared to just 26% of the general population.
And 33% of self-employed people were worried about money, while 30% were worried about the future.
Justin Harper, propositions and marketing director at LV=, (pictured) said the insurer was among the first to remove the waiting period restrictions for self-employed customers seeking specialist cover.
“The pandemic has made people re-evaluate their health and finances, particularly as support through the furlough and self-employed grant schemes have ended,” he said.
“The self-employed – especially those in building trade and driving profession – are very much on their own in the event of an income shock.
“They don’t quality for Statutory Sick Pay, so having an immediate income replacement safety net can provide a financial cushion against the sharp impacts of illness or injury.
“The return to pre-Covid waiting periods for all reflects our pragmatic approach as we continue to adapt, respond and do the right thing for our customers.”