LV= intends to upgrade the mortgage payment protection insurance sector with a new product offering accident, sickness, unemployment and mortgage payment cover. 

The new mortgage and lifestyle protection policy will pay out guaranteed premiums until the claimant returns to work or until the plan ends with disability definitions based on the policy holder’s occupation. 

LV= says the longer term of its new policy is a key distinction from other mortgage payment protection plans which are often limited to one or two years. 

The insurance company formerly known as Liverpool Victoria says the plan will offer a choice of level or index-linked living expenses protection.  

‘We saw that the market needed a more flexible product that could be tailored to their client’s individual needs and that was easy to understand,’ said Chris McFarlane (pictured), head of protection at LV=. 

McFarlane said LV=’s new plan will stimulate the protection market, and will be a helping hand for advisers hit by the downturn in the mortgage market. 

Tele-underwriting with medically trained staff will be used in the application process, said McFarlane. 

‘An additional bonus of this product is its flexibility, the client can alter their cover when their life circumstances change, for example if they move house, have children or get married,’ said McFarlane