Royal London has added an ‘underwrite later’ option for life cover on its business and relevant life plans, allowing cover to be offered while medical evidence is being obtained.
Eligible customers can get cover immediately on plans up to £3.5m while the provider requests medical evidence and completes the underwriting assessment.
According to Royal London, this will give advisers and customers the confidence that they are fully covered without additional exclusions. It added that plans can stay in force for up to six months while evidence remains outstanding.
Craig Paterson, chief underwriter at Royal London, said: “Our new approach to the underwriting journey gives advisers and their clients greater flexibility and relieves uncertainty over the availability of face to face medicals.
“The underwrite later option improves the customer experience and provides them with the reassurance that they’re covered straight away.”
The provider estimates with underwrite later the majority (93 per cent) of business and relevant life plan applications will received an immediate decision, up from around half of applications currently.
The option will be available to advisers online if Royal London cannot offer terms immediately, and the client meets the eligibility criteria. The application will be assessed as normal to make a final decision when all evidence has been received.
Tony Mudd, divisional director, development and technical consultancy at St. James's Place Wealth Management, commented: “I see this as a valuable additional tool that will not only make Royal London’s life offering simpler and easier for advisers but will also enhance advisers’ confidence and credibility in the eyes of their clients.”
The move by Royal London comes after LV increased its non-medical limits this month in a bid to alleviate pressure on the NHS.
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