Legal and General increases financial underwriting limits
Released on: October 28, 2008, 12:11 pm
Press Release Author: Joe Wiggins
Industry: Financial
Press Release Summary: Russ Whitworth, Underwriting and Claims Director said: "We are always looking for ways to improve our underwriting process and get customers on risk quickly and with a minimum of fuss
Press Release Body: October 2008 - Legal & General has increased its financial underwriting limits for life assurance and critical illness cover, which simplifies the underwriting process and leads to policies being issued more quickly. The new limits are GBP800,000 for life insurance (previously GBP600,000) and GBP500,000 for critical illness cover (previously (GBP350,000). Up to these sums, financial evidence such as clients' earnings or supporting information like loan offer letters will not be required.
Russ Whitworth, Underwriting and Claims Director said: "We are always looking for ways to improve our underwriting process and get customers on risk quickly and with a minimum of fuss. We also recognise that there is a perception in the industry that financial underwriting can be a complicated and time-consuming process, in part because some providers have high financial underwriting limits yet still ask for detailed financial information on every application form. We've therefore listened to our customers and simplified the process by only asking for detailed financial information for very high sums assured.
"Our new financial underwriting limits are market leading and therefore advisers and their clients will get a slicker service from Legal & General."
For life insurance applications of between GBP800,000 and GBP1.5million and for CIC applications of between GBP500,000 and GBP800,000, Legal & General will only require answers to four specific financial questions. Over and above these limits, more detailed financial evidence will be required.
Financial underwriting limits are standard in the protection industry and are in place because of the increased risk posed to an insurer of large sums assured. The underwriting criteria are freely available to advisers on the Legal & General Adviser Centre: www.legalandgeneral.com/advisercentre/index.html
Notes to Editors:
- Legal & General Assurance Society Limited is authorised and regulated by the Financial Services Authority (FSA). Registered office: One Coleman Street, London EC2R 5AA.
- The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decision.
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