The firm started pricing annuities based on customer postcodes in 2007. This was later followed by Prudential and Norwich Union. But MGM Advantage is the only provider to currently feature teleunderwriting.
L&G head of annuity product development Tim Gosden says: “We are looking at introducing teleunderwriting across the board, both for our direct proposition and through IFAs. If advisers are uncomfortable asking questions and customers find the medical form at the moment very complicated, it seems to be a good solution.”
The Retirement Adviser head of retirement planning Nick Flynn says: “It is good that L&G is looking to become more competitive because the consumer can only benefit from that.”
L&G is also set to launch a simplified enhanced product called annuity plus which caters for common conditions such as high blood pressure, high cholesterol, type two diabetes and smoking.