Legal & General’s Financial Underwriting Limits
The below tables detail our minimum financial underwriting requirements.
We reserve the right to request additional evidence (or clarification of any information) to support the financial underwriting of any application.
Key: CLOL -Copy of Loan offer Letter
PAQ - Personal Assurance Questionnaire
BAQ - Business Assurance Questionnaire
Life Cover and Critical Illness Cover
Amount |
Life |
CIC |
| Personal Protection |
| £250,001 - £500,000 |
|
|
| £500,001 - £1 million |
|
|
| £1,000,001 - £2 million |
- PAQ signed by applicant and countersigned by independent third party
- Private residential loan – CLOL required
|
|
| Over £2 million |
- Each case will be viewed individually and cover may be restricted – the following are minimum requirements, additional supporting evidence may be required
- PAQ signed by applicant and countersigned by independent third party
- Private residential loan – CLOL required
- Family Protection Independent third party evidence of earnings
- Inheritance Tax (IHT) – Independent third party statement of net worth
|
|
| Business Protection |
| £250,001 - £500,000 |
|
|
| £500,001 - £1 million |
|
- BAQ signed by applicant
- Two years reports and accounts
- Loan related – Copy of Loan Offer Letter
|
| £1,000,001 - £2 million |
|
|
| Over £2 million |
- Each case will be viewed individually and cover may be restricted – the following are minimum requirements, additional supporting evidence may be required
- BAQ signed by applicant and countersigned by independent third party
- Two years reports and accounts
- Loan related - CLOL
|
|
Income Protection Benefit (IPB) & Mortgage Protection Insurance (MPI):
Amount |
IPB
|
MPI
|
| Up to £36,000 pa |
|
|
Over £36,000 pa
(Equivalent £3,000 per month) |
- Evidence of earnings;
Employed: Last 3 months salary slips or a copy of P60.
Self – employed: Copies of last 3 years audited reports and accounts
|
- Evidence of earnings;
Employed: Last 3 months salary slips or a copy of P60
Self – employed: Copies of last 3 years audited reports and accounts
- Copy of Loan Offer Letter
|
Additional Notes
- 3rd party = accountant, solicitor, bank manager (i.e. independent of the sales process)
- PAQ/ BAQ – will also consider factfind (Personal Financial Review / Business Financial Review) signed by the applicant if available and includes sufficient detail
- Supporting evidence on business covers – could include full background report detailing need for cover and explaining any unusual factors, applicant’s CV, business plan with projections, company valuation etc
- Statement of net worth should include breakdown of assets, liabilities, net worth, IHT liability and details of all reliefs used in its calculation
- Copy of Loan Offer Letter (CLOL) can be replaced with latest statement of loan interest for in force loans.
For further information, please call our Medical Underwriting Technical Advice Line (MUTAL) on 0870 3333 699. Lines are open between 9.00am and 5.30pm, Monday to Friday. Calls are charged at the national rate. For your protection we may record and monitor calls. |
