Legal & General has extended its annuity quote guarantee period from 18 days to 35 days in a bid to ease time and cost pressures on advisers and direct customers.
The extended guarantee period applies to both standard and enhanced annuity quotes and comes into effect immediately.
The provider will also continue to offer its ‘Best Rate Guarantee’ facility, meaning if annuity rates improve within the quote guarantee period the better rate will automatically be applied.
L&G individual retirement solutions head of strategy Tim Gosden says: “We’ve been aware that the length of the guarantee period can place some customers and intermediaries under unnecessary pressure when they are in the process of trying to secure the best retirement income solution.
“By effectively doubling the annuity rate guarantee period from 18 to 35 days, we believe that significantly more customers will be able to secure their annuity income on the terms originally quoted by us and potentially benefit from our ‘Best Rate Guarantee’.
“Given the often ‘one off’ nature of annuity purchase, making the right decisions is very important and so we hope our new extended guarantee period will mean that customers and intermediaries have extra time to consider the options without the worry and financial consequences of missing the annuity rate guarantee deadline.”