Norwich Union has cut its rates in both Term Assurance and Mortgage Protection products with critical illness options with effect from 29th November 2000. Mortgage Protection with Critical Illness has been reduced by up to 20%* and Term Assurance with Critical Illness has been reduced by up to 15%*.
Norwich Union has cut its rates in both Term Assurance and Mortgage Protection products with critical illness options with effect from 29th November 2000. Mortgage Protection with Critical Illness has been reduced by up to 20%* and Term Assurance with Critical Illness has been reduced by up to 15%*.
This latest cut comes in addition to a reduction of up to 25% in term assurance and mortgage protection rates, announced on 1 November 2000, and is supported by a market leading Mortgage Repayment Guarantee on the Mortgage Protection product designed to give customers peace of mind.
The guarantee means that, provided the loan interest rate is 10% or lower when the mortgage is taken out, Norwich Union guarantees there will never be any loan outstanding should a claim arise**. This effectively ensures that policyholders will not have to worry about higher interest rates in the future.
The Critical Illness component ensures that mortgage protection and term assurance benefits will also be payable to policyholders who develop a specified critical illness.
It is a clear demonstration of Norwich Union's commitment to provide first rate value for money and market-leading premiums.
Commenting on the rate cuts, John Enos, Director of IFA Sales, said:
"Our commitment to this market is demonstrated in our active monitoring of the market place, supported by our established and rapid re-pricing process."
"In creating the number one company, we're continually driving down costs by investing in state-of-the-art systems and introducing first class product support services."
-ENDS-
Notes to Editors
- 1. Norwich Union is the UK life and general insurance trading brand of holding company, CGNU plc, which was created from the merger between CGU and Norwich Union on 30 May 2000.
- 2. Norwich Union is the UK's largest life and pension company (based on 2000 new premium income).
- 3. Norwich Union IFA extranet site: www.norwich-union.co.uk/ifa
* Some rates may be subject to increases.
** How the guarantee works:
The policy contains a schedule of sums assured reducing each year at an assured rate of 5% p.a. However, in the event of a claim, where the amount shown in the schedule is lower than the outstanding mortgage, the policy guarantees to pay off the balance of the mortgage on death of the life insured (or satisfactory diagnosis of terminal illness or critical illness), during the policy term, regardless of any increase in mortgage interest rates, provided that:
- The mortgage interest rate was no more than 10% when the policy commenced
- The initial sum insured was not less than the amount of the mortgage when the policy was taken out
- The amount and term of the mortgage have not changed (except when the policy has been amended in line with the new mortgage details)
- Mortgage repayments are up to date
- Premiums have been maintained
Full written details are available on request
Press Office contacts:
Ian Frater - 01904 452791
Helen Murray-Wells - 01904 452617
Out of hours - 07889 995726