Legal & General: Fairer life insurance
Legal & General has changed its life insurance plans to make it easier for surviving partners to benefit where deliberate non-disclosure has taken place.
It is now offering single life policies to people who would previously have had a joint life insurance plan cancelled because their partner did not disclose important information.
Russ Whitworth, underwriting and claims director for Protection, said: "We think that it is fairer to set up a single policy and then only charge them the premium that they would have paid at the time than to make them apply for cover all over again."
In the past, surviving partners have missed out receiving much needed cover because Legal & General had found evidence of reckless or deliberate non-disclosure and declined a claim.
It had led to that person potentially facing higher premiums if they applied for a new policy and their healthy deteriorated.
Mr Whitworth added: "Admittedly it is pretty rare for us to cancel a joint life policy as a result of significant non-disclosure, but it does happen.
"In this scenario the surviving partner is left with no cover through no fault of their own and so we have taken steps to help these people."
- Tags:
- product news
Comments
Newsletter sign up