little book of protection

Little Book of Protection

Having protection can’t reduce the odds of something happening to you – but it can make life a lot easier if it does.

The Little book of protection has been designed to explain some of the different types of protection available to you as well as some interesting lifestyle facts.

If you have any more questions, your financial adviser will be more than happy to help.

Page 01 Introduction

Like many people you might think life’s too short to worry about what might go wrong in the future.

We agree!That’s why protection is such a good idea. It means you and your family can relax and enjoy life today knowing if something does go wrong tomorrow — money needn’t be an issue.

Medical

Key Facts

LV=

Financial

General

Lifestyle

LifeTime+A guaranteed whole of life policy useful to cover an inheritance tax liability if you die.

Family Income AssuranceA life protection policy designed to provide your family with a quarterly income if you die.

Gift Inter VivosA decreasing life protection policy lasting seven years designedto cover a potential inheritance tax liability if you die.

Please bear in mind that these products are designed for protection purposes only. They have no cash-in value. If you stop paying premiums your cover will stop and you won’t get anything back.

LV= has a range of protection products to suit your needs designed to change with your lifestyle.

Flexible Protection Plan This plan is designed to protect your family and lifestyle and includes life, critical illness, income and mortgage protection.

Mortgage & Lifestyle Protection Long-term accident and sickness cover that pays out until you’re able to go back to work, however long it takes.

Page 02 Protection

The average cost of raising a child from birth to the age of 21 is over £201,000. That’s £9,610 a year, £800 a month, £26 a day!

LV= Cost of a child survey 2010

Page 04 LV=

£9,610£800£26

Financial

19%

Having a baby is associated with a 19% increase in financial problems.

Financial Services AuthoritySeptember 2009

In the first half of 2010, LV= paid 93% of critical illness claims.

LV= claims department

Page 06 LV=

Financial

The average household spends over £18,500 a year on bills, rent/mortgage payments and weekly shop.

Confused.comJuly 2010

+£18.5k

Cancer survival rates have doubled in the last 40 years.

Cancer Research UKOctober 2010

Page 08 Medical

1970–2010Survivalx2

An ideal body mass index (BMI) is between 18.5 and 24.9.

NHS September 2010

Page 09 Medical

We’re here to support you emotionally as well as fi nancially. So, following the payment of a claim in relation to a serious illness, our free extra care service will offer you and your family the support you need.

Page 10 LV=

Doing 30 minutes of moderate intensity exercise fi ve times a week can half your risk of heart disease.

British Heart Foundation September 2010

Page 11 Lifestyle

2.6 million people have been diagnosed with diabetes in the UK. It’s estimated that a further half a million people may have the condition but don’t know it.

Diabetes in the UK 2010Key statistics on diabetes

Page 12 Medical

In the first half of 2010, LV= paid over 99% of life claims.


Page 13 LV=

One portion of fruit or vegetables is 80g. That’s the same as one apple or three heaped tablespoons of vegetables.

Food Standards Agency September 2010

Page 14 Lifestyle

1,556 people are made redundant every day in the UK.

Credit Action October 2010 (Based on 3 months to July 2010)

Page 15 Financial

,556

LV=

By taking out an LV= protection plan you’ll automatically become one of our members and be eligible for discounts on some of our other products.

More than 1 in 3 people will develop some form of cancer during their lifetime.


Page 17 Medical

18% of people are using debt to fund their living costs and 14% are struggling to meet repayments.

uSwitch.comJune 2010

Page 18 Financial

Employment and Support Allowance is just £91.40 a week.1 That’s less than 20% of the average UK salary!2

1 Department of Work and Pensions.

2 Economic and labour reviewSeptember 2010

Page 19 Financial

20%

Speak to your adviser to see how putting your protection policy in trust could mean the proceeds wouldn’t be liable for inheritance tax.

It doesn’t usually cost anything and it doesn’t need to be complicated.

Page 20 Financial

Financial

Over 2.6 million people are claiming benefits from the state due to incapacity.

Labour market statistics September 2010(As at February 2010)

x2.6million

Every 14 minutes a property is repossessed.

Credit ActionOctober 2010

Page 22 Financial

14 minutes

What’s the right protection for you?

Income Critical Illness Life Life & Critical Illness Whole of Life Mortgage Payment

General

What is income protection?

Income protection is an insurance policy that pays you a monthly income if you can’t work because of long term sickness or an accident.

This income can be used to help pay your bills and living expenses until you recover and are ready to return to work.

Put simply – income protection works when you can’t.

Is it right for me?

It might be if... you want to protect your ongoing living

expenses if you can’t work because of long term sickness or an accident

you want a policy that will pay you a monthly income until you’re well enough to return to work or until the end of the policy term

It might not be if... you want a product that pays a lump sum if you die or are diagnosed with a critical illness you want to receive support if you’re made

redundant or choose not to work

General

What is critical illness protection?

Critical illness protection is an insurance policy that pays you a one-off lump sum if you’re diagnosed with one of the specified critical illnesses covered by the policy during the policy term.

Is it right for me?

It might be if... you want a one-off lump sum to use as you

wish if you’re diagnosed with one of the specified illnesses as defined in the policy

you want cover for a specific period of time

It might not be if... you want a policy that will pay you a lump

sum if you’re diagnosed with an illness not defined in the policy

you want a policy that will pay you a monthly income if you are unable to work because of an illness or an accident

General

What is life protection?

Life protection is an insurance policy that pays a one-off lump sum if you die or become terminally ill during the term of the policy.

Life protection is also sometimes known as term assurance.

Is it right for me?

It might be if... you want your dependants to receive

a one-off lump-sum payment if you die


It might not be if... you want to cover yourself, and your loved

ones for the rest of your life

you want to receive a one-off lump sum if you’re diagnosed with a critical illness

General

What is combined life and critical illness protection?

Combined life and critical illness protection is an insurance policy that pays you a one-off lump sum if you’re diagnosed with one of the specified critical illnesses covered by the policy or if you die during the policy term.

Is it right for me?

It might be if... you want a one-off lump sum to use as

you wish if you’re diagnosed with one of the specified illnesses as defined in the policy

or want your dependants to receive a lump-sum payment if you die


It might not be if... you want a policy that will pay you a lump

sum if you’re diagnosed with an illness not defined in the policy

you want a policy that will pay you a monthly income if you are unable to work because of an illness or an accident

General

What is whole of life protection?

Whole of life protection is an insurance policy that pays a guaranteed one-off lump sum when you die.

This type of insurance is extremely useful in Inheritance Tax planning (when used alongside the appropriate trusts) but it can also help towards funeral costs, the repayment of outstanding debts or simply be a sum of money to leave your loved ones.

Is it right for me?

It might be if... you want your dependants to receive

a one-off guaranteed lump-sum payment if you die

you want cover for the rest of your life

you anticipate Inheritance Tax liabilities when you die and you want to provide funds to meet this liability

It might not be if... you only want to cover yourself, and your

loved ones for a specific period of time

you want to receive a lump sum if you’re diagnosed with a critical illness

What is mortgage payment protection?

Mortgage Payment Protection is an insurance policy which will cover your mortgage expenses if you can’t work because of sickness or an accident. It usually pays out for a limited period of up 12 or 24 months.

Depending on the policy you choose, there may also be the option to add unemployment cover to the policy. Mortgage Payment Protection is also sometimes known as Accident, Sickness & Unemployment insurance (ASU).

Is it right for me?

It might be if... you want to protect your mortgage expenses

if you can’t work because of sickness, an accident or redundancy (if included in the policy) for the short term

It might not be if... you want to protect your mortgage expenses

if you can’t work because of sickness or accident for the longer term (24 months or more)

you want a product that pays a lump sum if you die or are diagnosed with a critical

illness

you want to receive support if you take voluntary redundancy

Page 29 General

Divorcing or separating increases financial problems by 17%.

Financial Services Authority, September 2009

Page 31 General

The average new family car costs £5,523 a year to keep on the road.


Page 32 Financial

At least 1 out of 6 people will experience depression in the course of their lives.

MindAugust 2010

Page 33 Medical

More than 2.2 million people in the UK have been off work due to long-term sickness.

Labour market statistics – September 2010(For period May–July 2010)

Page 34 Medical

Statutory Sick Pay is £79.15 a week for up to 28 weeks

Department of Work and Pensions 2010

Page 35 Financial

£79.15/28wks

LV=

In the first half of 2010, LV= paid over 90% of income protection claims.


If every UK household installed just one extra energy saving light bulb in their home, the CO2 saved would be equivalent to taking 70,000 cars off the roads.

Energy Saving TrustAugust 2010

Page 37 General

Research suggests that up to half of all cancers in the UK could be avoided by lifestyle changes.


Page 38 Lifestyle

If you’ve been off work sick for six months, you have an 80% chance of being off for five years.

Department of Work and PensionsSeptember 2010

Page 39 Medical

80%Chance

85% of men and 69% of women eat too much salt. Around 3/4 of the salt we eat is already in the food we buy.

Food Standards AgencyAugust 2010

Page 40 Lifestyle

Every 2 minutes someone is diagnosed with cancer in the UK.


Page 41 Medical

Every2mins

Men who quit smoking by 30 can add 10 years to their life.

NHSAugust 2010

Page 42 Lifestyle

30+10yrs

LV=

With LV= critical illness cover, children are covered for a reduced number of illnesses at no extra cost.

Terms and conditions apply.

The government’s daily guideline of alcohol for men is 3–4 units, 2–3 units for women.

Department of HealthMay 2010

Page 44 Lifestyle

Around 2/3rds of Employment and Support Allowance claims are unsuccessful.

Department of Work and PensionsJuly 2010

Page 45 Financial

The average owed by every UK adult in the UK is £29,929 (Including mortgages). That’s 126% of average earnings!


Page 46 Financial

126%£29,929

30 minutes of swimming can burn up to 250 calories. That’s the same as a jam doughnut!

NutracheckAugust 2010

Page 47 Lifestyle

The average wedding costs £21,000.

Guardian.co.ukAugust 2010

Page 48 Financial

The average length of an income protection claim with LV= is 8 years.


Page 49 LV=

The average salary in the UK is £455 a week. That’s £23,660 a year.

Economic & Labour Review September 2010

Page 50 Financial

£455£23,660

Just under a quarter of adults are obese.

National Office for Statistics Social Trends 2010

Page 51 Medical

Lifestyle

Only 40% of women and 28% of men do the recommended amount of exercise.

British Heart foundationUK Coronary heart disease statistics 2009-10

Speak to your financial adviser for your protection needs

LV= and Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV=Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333. 21016051 10/10

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