The term and terminal illness cover (TIC) policy now offers cover up to the age of 90 and has the 12 month exclusion period removed, effective 14 March.

The insurer has increased the maximum expiry age of its term only products from 80 to 90 and extended the maximum policy length to 50 years, which the insurer said applies to level, mortgage and business protection cover.

The removal of the final 12 month exclusion period allows customers to claim following diagnosis, at any time whilst their policy is in place, meaning they will now be covered should they be diagnosed with a terminal illness up to and including the last day of cover.

Legal & General paid out on 96.9% of TIC claims in 2014, at a value of £86m. With this change in place, the insurer will be able to pay even more claims in the future.

Steve Bryan, director, intermediary, Legal & General said: "The UK has an ageing population and with 60% of projected household growth, over the next two decades being among those aged 65 and over, it is vital that our financial products cater to these changing customer needs.

"With increasing numbers of lenders also changing their mortgage terms, in line with these demographic changes, we need to ensure that borrowers of all ages can protect their homes and loved ones for longer. So we will continue to develop and review our products, to help us to pay even more claims and support our customers when they need us most."