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Legal & General temporarily withdraws unemployment cover

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  • 19/03/2020
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Legal & General temporarily withdraws unemployment cover
Legal & General Insurance, part of LV= General Insurance, has temporarily withdrawn its unemployment cover for new customers amid fears of high job losses in sectors directly affected by the government’s advice to limit social contact.

 

It is understood L&G has also removed a recently launched feature of its income protection product that allowed customers to receive a pay out after being off work for two weeks. This has been reset to four weeks.

According to analysis by the trade body UK Hospitality, more than £1m jobs are now at risk, the FT reported.

Around a quarter of UK workers have jobs in areas where demand has fallen because people have been encouraged to avoid large gatherings and stay at home when possible to avoid catching and spreading the coronavirus.

Simon Hird, director of broker and intermediary at Legal & General Insurance, part of LV= General Insurance, said: “In light of the rapidly changing situation following the outbreak of Coronavirus (Covid-19) in the UK and its impact on the country’s economic outlook, we have decided to temporarily pause new sales of our unemployment cover, included as part of our Lifestyle Cover product, through our intermediary partners.”

The change in terms does not apply to customers with existing policies or who have a quote for unemployment cover which is still within its quote validity period.

Customers are also still able to purchase accident and sickness cover as part of L&G’s Lifestyle Cover insurance through its advisers.

Hird added: “We understand that this is an unprecedented situation and will continue to monitor our approach as new information becomes available.”

 

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