Senior policy adviser Matt Morris says it is unfair on consumers if a provider makes policy exclusions without lowering the price of the policy.
He says: “Reducing the premiums when there are exclusions applied is important because not only is it fair to the consumer, as they are not covered for something so surely it is fair that providers drop the price, but it also means that consumers are more likely to take up the policy as a result.
“Fortis has taken the brave and very treating customers fairly step of reducing the premium if they impose exclusion for the spine or mental illness, which appeals to clients and is good for advisers. All providers should follow suit.”
Legal & General PR manager for housing and protection Joe Wiggins says the provider does not reduce protection premiums for exclusions because “it would be quite complex to work out how much a reduction should be”.
An Aegon spokesman says the firm does not currently reduce premiums if there are policy exclusions but “this is an area that we are looking into”.