FTAdviser.com

Advertising

Legal & General has increased its financial underwriting limits for life insurance and critical illness cover.

The aim is to simplify the underwriting process and issue policies more quickly, in response to customer demand.

The new limits are £800,000 for life insurance, up from £600,000, and £500,000 for critical illness, previously at a level of £350,000. Legal & General confirmed that financial evidence, such as clients' earnings, or supporting information will not be required for applications up to these new limits.

Russ Whitworth, underwriting and claims director for Legal & General, said: "We are always looking for ways to improve our underwriting process and get customers on risk quickly and with a minimum of fuss.

"We also recognise that there is a perception in the industry that financial underwriting can be a complicated and time-consuming process, in part because some providers have high financial underwriting limits, yet still ask for detailed financial information on every application form.

"We have therefore listened to our customers and simplified the process by only asking for detailed financial information for very high sums assured."

Mr Whitworth said: "Advisers and their clients will get a slicker service from Legal & General."

Legal & General also said that only four financial questions would be asked for life assurance applications of between £800,000 and £1.5m and for critical illness applications of between £500,000 and £800,000.

The company confirmed that more detailed financial evidence would be required for applications above these limits.