LV= has launched an online calculator for advisers to work out how much commission they risk losing if their pipeline cases are not completed before gender neutral pricing comes into effect on 21 December.
If a customer’s protection application is still in LV=’s pipeline on 21 December it will switch to gender neutral rates, which are likely to be up to 25 per cent higher for some customers.
LV= says if this happens, there is a possibility the customer could chose not to go ahead with the cover.
Premiums for life and critical illness are expected to rise for both males and females after 21 December.
An LV= spokeswoman says: “If a protection application is still in the pipeline on 21 December it will switch to gender neutral rates. This will result in a change of premium and, for many clients, an unwelcome increase. For the adviser there could be a real risk of losing the business if this happens and therefore their commission. The tool can be used to quickly calculate how much of their income could be in danger.”
Life Cover for All partner Mike Weedon says: “Anything that helps advisers to plan in what is likely to be a busy period over the next few months has got to be welcomed.”