Legal & General is slashing life and critical-illness cover rates for online business, emphasising that brokers will have to become more active in the e-protection market.
Its reduction in rates for online submission reflects its e-philosophy.
A couple aged 35 next birthday applying for a £150,000 joint level term policy over 25 years would pay £16.98 in monthly premiums for paper submission compared with a premium of £16.31 for electronic submission.
The difference is considerably greater for cover for 35 years under the same plan for a couple aged 25. A paper submission would cost £22.89 a month but an e-submission would cost only £13.91 a month.
L&G is encouraging IFAs to make submissions online to the extent that it is pulling out of the market for terms of 35 years plus that are not made via the web.
Life Policies Direct managing director Jason King says: “I expect that this trend will continue as e-submission develops and grows in popularity.
“Brokers will have to embrace e-submission or withdraw from the protection market.”