Key said clients only require a simple set of yes/no questions to be able to take out a higher loan-to-value policy.
It added that there is a lack of understanding around how an increased LTV can provide an increased inheritance guarantee, meaning some advisers don’t bother asking health and lifestyle questions because they don’t think there will be a benefit for the client.
Dean Mirfin, technical director, Key Retirement, said: “Whether clients are looking to secure the maximum LTV or the best guaranteed minimum inheritance it is essential that they are underwritten.
“Advisers should be underwriting every client as the enhanced borrowing or availability of greater guaranteed inheritance may prove essential and needs to be explored with every client.
“The protected inheritance offered through underwriting appears to be overlooked by many who do not understand that this can be a direct benefit of the increased LTVs available.
“It is essential that all clients are provided with the full picture so that along with their adviser they can effectively review their needs and priorities against the widest range of options available. This cannot be done without capturing health and lifestyle details for every client.”
