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Legal & General aims to make Joint Life Insurance Policies Fairer
UK Life Insurance provider Legal & General has just revealed it is now taking steps to make its joint life policies fairer. The protection giant will now offer single life policies to people who would previously have had their joint life policy cancelled as a result of non-disclosure from their partner.
Prior to this, had a named party in a Legal and General joint life policy died during the term and subsequent evidence of non-disclosure - whether intentional or not - revealed, the surviving policy holder would be penalised. Any claim would be declined and the policy cancelled leaving the surviving policy holder with both no payout and no life cover.
Not only this, they could then face the prospect of paying significantly higher premiums due to their increased age upon application or perhaps due to having poorer health than they did previously.
With the changes Legal and General have now enforced, in such a case as this, the surviving policyholder will be guaranteed a single life policy with premiums that match what they would have been had they applied for single life cover in the first place.
Although the cancellation of a joint policy due to non-disclosure is by no means an everyday occurrence it does happen and may result in an innocent party being punished financially during what will undoubtedly be a traumatic time. Legal and General no doubt see these new measures as a step towards treating such customers more fairly and sensitively than previously.
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