Protection Tomorrow May 2021 | Page 25

EDITION 1 | MAY 2021
25
What are the benefits of Underwrite Later ?
There are several benefits for both advisers and clients :
1 Up to 93 % of business and RLP life cover application could start immediately – up from 49 % of application that currently start immediately after initial assessment .
1 Full cover with no additional exclusions added as standard .
1 Relief from uncertainty over the availability of face-to-face medicals and the extended timescales to obtain GP reports .
1 Clients stay engaged – thereby reducing the adviser ’ s risk that their client loses interest during a lengthy underwriting process and decides not to proceed .
1 Up to £ 3.5million cover for each person under a Business Menu or Relevant Life Plan .
How do I access Underwrite Later ?
It ’ s really easy as it ’ s part of the online application – you just tick the box when the option is presented . When we receive the application ( and the box is ticked ) we ’ ll assess if we can offer cover immediately and then tell the adviser the good news . We can then start the plan with full cover , and start collecting the premiums .
In the background we ’ ll do all the normal underwriting requirements , including collecting GP reports and arranging medicals . To confirm the initial decision we made was the right one , we ’ ll need all the correct information provided up front on the application form . Any underwriting evidence we receive then just reinforces our decision , giving the adviser confidence and their client peace of mind .
In most cases we expect to confirm the terms we started the cover on . In a small number of cases we may have to change the terms of the plan , or in some circumstances , cancel it . This could be due to the
Free Cover
Cover Now , Underwrite Later
Maximum sum assured £ 1m £ 3.5m Maximum age 60 Same as cover applied for
Cover period
3 months
original application being either inaccurate or incomplete .
If any of the plans on the application are to be placed under a business trust or relevant life trust , we ’ d recommend completing one of our online , signature free trusts . These can be set up as part of the online application and should be in place before the plan starts to avoid a potential Capital Gains Tax ( CGT ) liability .
How does this compare with our Free Cover option ?
The Underwrite Later and Free Cover options will each appeal to different clients and their individual circumstances . Here ’ s a quick summary of the key differences between these two benefits :
Underwriting complete within 6 months
Ongoing duty of disclosure Yes No Standard exclusions Yes No Premiums No Yes , start immediately
Looking further ahead
The pandemic has certainly thrown us some challenges and it ’ s great to see how the industry has pulled together to adapt . We hope our efforts will give advisers greater confidence when recommending protection cover , and more importantly give their clients the peace of mind that they have the cover they need , even quicker . If Underwrite Later is a success , then we can perhaps consider expanding it out to other covers , such as whole of life and personal protection . That would be a real step change for the market !
For more information on Underwrite Later visit adviser . royallondon . com / protection