Legal & General has announced that automatic premium increases have been abolished on insurance applications for gay and bisexual people.
Until now, Legal & General had automatically increased the cost of life insurance for these groups of people. However, the insurer has now confirmed that normal premium rates will apply as long as certain conditions are met.
In order to qualify for standard premiums, without any additional cost, the person applying must have had no history of sexually transmitted infections, have a current negative HIV test and be applying for life insurance and/or critical illness upto a maximum limit of £200,000.
Our View:
Automatic higher premiums across the board for certain groups of people can be exceptionally frustrating. However, it is a fact that certain people pose a higher risk of payout to insurance companies.
We believe that by imposing certain criteria Legal & General has lowered its risk of exposure to claims, whilst opening its doors to more business. Life insurance and critical illness cover are very competitive products between insurance companies.
We would recommend you shop around for the best rates and read the small print.
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