Legal & General increases financial underwriting limits

Legal & General has increased its financial underwriting limits for life insurance and critical illness cover, which simplifies the underwriting process and leads to policies being issued more quickly.

The new limits are £800,000 for life insurance (previously £600,000) and £500,000 for critical illness cover (previously (£350,000). Up to these sums, financial evidence such as clients' earnings or supporting information like loan offer letters will not be required.

Russ Whitworth, Underwriting and Claims Director 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've therefore listened to our customers and simplified the process by only asking for detailed financial information for very high sums assured.

"Our new financial underwriting limits are market leading and therefore advisers and their clients will get a slicker service from Legal & General."

For life insurance applications of between £800,000 and £1.5million and for CIC applications of between £500,000 and £800,000, Legal & General will only require answers to four specific financial questions. Over and above these limits, more detailed financial evidence will be required.