Legal & General has increased the threshold at which life cover and critical-illness policies need to be underwritten as part of an overhaul of criteria.
The changes are effective immediately and aim to create a simpler application process for consumers, requiring less financial disclosure. Financial underwriting for life cover will start at a sum assured of £1.5m, raised from £800,000. Critical-illness underwriting will start at £750,000, up from £500,000.
Extra financial information is only required if policies above the new thresholds are taken out. L&G says it has also simplified the questions asked in the application process.
L&G general protection underwriting and claims director Russ Whitworth says: “We felt there was scope to make these improvements to simp-lify the application process for larger sums assured.
“We are streamlining the amount of information our customers need to provide in order to get cover as well as speeding up their applications.”
Plan Money director Peter Chadborn says: “Anything that makes the application process less arduous is absolutely welcomed. But life offices need to show they are going to have an open mind to underwriting before moves like this will encourage us to use them more.”