UK mutual insurer Royal London is introducing an Underwrite Later option to any potential customers taking out a life or business policy.
This means the firm will be able to offer cover while medical evidence is being processed.
Clients won’t have to wait for the underwriting assessment to be complete either.
“Eligible customers will have the option to get cover straight away on Life Cover plans up to £3.5m ($4.8m, €4m),” Royal London added.
This will give “advisers and customers confidence” as there won’t be any additional exclusions and the plan can “stay in force up to six months whilst evidence remains outstanding”, it added.
Innovation in protection space
Royal London estimated that 93% of Business Menu and Relevant Life Plan applications will be “eligible to be placed on risk immediately following the launch of Underwrite Later”.
This compares with around 50% of application that previously received an immediate decision.
The option will be available online to advisers if the firm cannot offer terms straight away and their clients meet eligibility criteria.
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.”
Tony Mudd, divisional director of development & technical consultancy at St James’s Place Wealth Management, said: “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.
“For me, this is yet another example of Royal London’s desire to innovate and promote protection and the fact that they have done so in such challenging times is all the more impressive.”
