|
New
rates for our range of term assurance contracts
New
rates
As
part of Legal & General’s long term commitment to the
protection market, we will be introducing a further reprice
with effect from 19 November 2006, to our range of term
assurance contracts. Please see below for all products/options
included in this reprice:
|
Level
Term Assurance
Decreasing
Term Assurance
Level
Term Assurance with Critical Illness Cover (guaranteed
premiums)
Level Term
Assurance with Critical Illness Cover (reviewable
premiums)
Decreasing
Term Assurance with Critical Illness Cover (guaranteed
premiums)
Decreasing
Term Assurance with Critical Illness Cover (reviewable
premiums)
Level Tax
Efficient Life Insurance
Plan
Decreasing
Tax Efficient Life Insurance
Plan
Family and
Personal Income Plans
(FPIP) |
We
have responded to a number of competitor movements in recent
months and this reprice aims to maintain our overall
competitive position. This reprice affects both paper and
e-rates. Our e-rates were repriced on 5 November whereas our
paper rates were last repriced on 17 September, therefore
there are more changes to our paper rates on this
reprice.
The
tables below show a breakdown of these rate
changes:
|
Product |
Electronic
rates |
Paper
rates |
|
Term
Assurance (Life only) |
5%
will be reduced
82% will remain unchanged
13% will
be increased |
30%
will be reduced
52% will remain unchanged
18% will
be increased |
|
Term
Assurance with CIC
(guaranteed
premiums) |
3%
will be reduced
77% will remain unchanged
20% will
be increased |
58%
will be reduced
29% will remain unchanged
13% will
be increased |
|
Term
Assurance with CIC
(reviewable
premiums) |
6%
will be reduced
78% will remain unchanged
16% will
be increased |
27%
will be reduced
57% will remain unchanged
16% will
be increased |
|
Tax
Efficient Life Insurance
Plan |
14%
will be reduced
62% will remain unchanged
24% will
be increased |
28%
will be reduced
45% will remain unchanged
27% will
be
increased |
The above movements
relate to all quote options for the products listed, however
please note that the actual change in premiums will differ
according to the individual case.
There
have been minimal changes to FPIP premiums, however you may
notice an increase or decrease in premiums in a small number
of cases.
Policy
authorisation
|
|
Date
applications have to be received by
Legal
& General Admin |
Last
date for policy authorisation † |
|
Rates
prior to
19
November 2006 |
19
December 2006* |
19
March 2007 |
*For
Online Protection saved and recalled cases, submission will
not be allowed for cases older than four months from the
original quote date.
†We
understand that in some circumstances it is not always
possible to adhere to the four month pipeline rules. For
example when the product is mortgage related and the sale of
the property has not completed or the case is still being
underwritten. Therefore, we will extend the deadline to a
maximum of six months from the
reprice date for cases where the delay is out of the agent and
the customer’s control.
Existing
transitional arrangements
For details, please click on
this link.
Systems
Quotations
with the new premiums will be available from a number of
systems, please click on this link for full
details.
Online Protection
process
New
cases that are submitted via Online Protection and quoted on
or after 19 November will be based upon the new premium rate.
If you have saved a case and obtained an acceptance in
principle before 19 November 2006 and want to submit the case
via Online Protection after this date, this should be
accepted, as long as the case is not over four months old from
the original quote date, otherwise the manual process should
be followed.
Please click on this link for the
Online Protection Manual
Process.
Quotes
and submission for ‘e’ price
To
obtain the ‘e’ price for your client and receive the extra 10%
LAUTRO Initial Commission (LIC), for level term and decreasing
term life assurance business, the application must be
submitted via either Online Protection or Term PAC, or for
Family and Personal Income Plans via Online Protection.
Please click on this link for the
quotes and submission process for ‘e’
price.
Paper
transitional arrangements
If
the application is accompanied by an illustration, the date of
the illustration will drive the terms of the
policy.
- Applications with
illustrations dated before 19 November 2006 will receive the
old rates and terms.
- Applications with
illustrations dated on or after 19 November 2006 will be
given the new rates and terms.
If
the case is not accompanied by an illustration the date that
the application form was signed will drive the
terms.
- Applications
dated before 19 November 2006 will receive the old
rates.
- Applications
dated on or after 19 November 2006 will be given the new
rates.
It
will not be possible to re-input pipeline cases if the new
rate is more beneficial than the old rate.
Contact
us
Our
specialist Protection sales team are only a phone call away.
If you would like further information on the above, please contact
us. |
