LV= will switch to gender neutral rates on 1 December in an effort to deal with pipeline cases ahead of gender-neutral pricing.
The provider will underwrite an application based on medical information provided and offer customers a pre-gender premium as long as the application is received by 1 December.
If further medical evidence is needed, LV= will offer a “G-Day guarantee” that the business will be placed on pre-gender equalisation rates. The further evidence needs to be provided within three months of the cover start date.
If the medical evidence is materially different from the application, LV= will alter the premium but this will still be on pre-gender rates. LV= expects to make alterations to around 1 per cent of policies on medical grounds.
LV= won’t apply the guarantee to female income protection business, as premiums are set to decrease under gender neutral pricing.
Advisers do not need to request that the guarantee is applied to protection applications received before 1 December. LV= will update the adviser on the progress of the application as normal, and automatically inform the adviser if the guarantee needs to be activated.
LV= head of protection Mark Jones says: “We have listened to advisers’ requests to provide a clear, simple and common-sense approach to pipeline business and switch to gender-neutral rates ahead of 21 December to avoid any last-minute uncertainty.”
In July, Ageas Protect launched its “G-day” protection promise to help customers who cannot be placed on risk before 21 December to secure cover at pre-gender neutral pricing levels.
In March 2011, the European Court of Justice ruled that from 21 December 2012 insurers can no longer charge different premiums for men and women.
Plan Money managing partner Peter Chadborn says: “There is no ambiguity about it – you get your application in by 1 December and you will get pre-gender rates. Advisers need this sort of certainty.”