We’re pleased to announce that from 18 November 2007, we’re making significant increases to our maximum term and maximum sum assured for personal and business cover, for our range of Critical Illness Cover (CIC) products.

These increases are in response to changing consumer trends driven largely by the housing market. With house prices having increased significantly in the last decade, average mortgages have also increased and homeowners are taking out mortgages of higher value and over longer terms.

Correspondingly, clients now require a critical illness policy to cover them for a longer period of time and for a greater amount of cover. The increases to our maximum term and sum assured for our range of CIC products will make it easier for customers to match protection cover with their needs.

Please note that the maximum monthly benefit amount allowable for our Family and Personal Income Plan Critical Illness Cover and Family and Personal Income Plan Term Assurance + Critical Illness Cover will remain at £4,000 per month.

Also, we operate a ‘maximum CIC in force across the market’ which means that the amount of cover we can offer an individual will depend on how many policies they hold with other providers and whether Legal & General is made aware of them. This will now be £3m for both business and personal cover (including FPIP on a commuted basis).

Literature changes
All relevant Key Features and Technical Guides, the Underwriting Guide and the Occupation Class Guide will be updated and available from 12 November 2007.

Pipeline arrangements
New business in the pipeline at 18 November 2007 will not be affected by these changes. If a client wants to change an application you’ll need to give them a new quote and depending on their application you may need to re-sell and re-submit a new application to have the higher terms applied.

If you need any help or if you have any questions, please contact us .