Legal & General's Group Protection helps keep auto-enrolment simple.
30 July 2012
From October 2012 auto-enrolment becomes a legal requirement for companies to operate, starting with large employers first, and by February 2018, all employers will need to have implemented it. When an employer starts auto-enrolment, they need to include all eligible employees who haven't yet joined the employer's pension scheme. Legal & General refer to employees who join their employers pension scheme after they're first eligible to be included, as a late entrant. It is expected there will be many late entrants to the employer's pension scheme at this time.
Auto-enrolment will affect Group Protection policies where cover is dependent on employees joining the pension scheme. Legal & General has updated their policy terms with auto-enrolment in mind. These new terms will make linking Group Protection cover to membership of an employer's pension scheme as simple as possible.
Previously Legal & General used different policy terms for Group Protection cover that depended on how late an employee joins the scheme. An employer had to administer these different terms and employees joining more than 6 months late, had to provide information about their health before they were considered for cover.
Now Legal & General have simplified the process and will treat all late entrants the same, regardless of when they join the pension scheme. They believe their new terms will allow more entrants to get Group Protection cover without providing information about their health.
Plus, Legal & General will keep their accounting procedures simple for late entrants when auto-enrolment starts. In most cases, employers will not need to send extra membership data and their accounting procedure will not change.
Diane Buckley, Managing Director, Group Protection at Legal & General said,
"Auto-enrolment will have a big impact on employers and we wanted to ensure it was as easy as possible for them to make any changes to their Group Protection policies to simplify cover for their employees. The changes to our process means they won't have to worry about providing additional medical evidence for employees joining late which will reduce administration and their accounting procedures".
Notes to editors
Legal & General Assurance Society Ltd. Registered office: One Coleman Street, London, EC2R 5AA. Registered in England No. 166055
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 March 2012, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
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