Norwich Union is reducing the premium rates on term assurance products with effect from Monday 25 April 2005.
Norwich Union is reducing the premium rates on term assurance products with effect from Monday 25 April 2005.
The changes to premium rates are as follows:
- Term assurance without integrated guaranteed critical illness premiums have been reduced by an average of 2.6%. (93% of premium rates have been reduced, 5% remain unchanged, 2% have been increased.)
- Term assurance with integrated guaranteed critical illness premiums have been reduced by an average of 4.7%. (All premium rates have been reduced.)
- Mortgage life insurance without integrated guaranteed critical illness premiums have been reduced by an average of 2.5%. (88% of premium rates have been reduced, 12% remain unchanged.)
- Mortgage life insurance with integrated guaranteed critical illness premiums have been reduced by an average of 5.2%. (99% of premium rates have been reduced, 1% have been increased.)
Example Premiums
Premium changes for specific cases will vary.
The examples below illustrate typical changes for policies with Ł100,000 sum assured:
| Term assurance (with CI) | Current monthly premium | New monthly |
| Male, NS, 30NB, 20 year term | Ł26.60 | Ł25.40 |
| Female, NS, 30NB, 20 year term | Ł25.10 | Ł23.90 |
| The examples below illustrate typical changes for policies with Ł130,000 sum assured: | ||
| Mortgage Life Insurance (without CI) | ||
| Male, NS, 40NB, 25 year term | Ł14.82 | Ł14.15 |
| Female, NS, 40NB, 25 year term | Ł12.97 | Ł12.44 |
| Mortgage Life Insurance (with CI) | ||
| Male, NS, 30NB, 15 year term | Ł21.71 | Ł20.50 |
| Female, NS, 30NB, 15 year term | Ł22.84 | Ł21.63 |
-ends-
Press office contacts:
Robert Pell 01904 452 659 or 07800 699 563
James Evans 01904 452 791 or 07800 699 525Notes to Editors
- ‘NS’ and ‘S’ denotes Non Smoker and Smoker Rates ‘NB’ denotes quote based on customers age at next birthday.
- The premium charged depends on the age, sum assured and other relevant underwriting criteria.
- Term assurance premium rates were last reviewed on 6 April 2005 when: Term Assurance without Integrated Guaranteed Critical Illness premiums were reduced by an average of 0.9%, Term Assurance with Integrated Guaranteed CI premiums were reduced by an average of 5.7% and MLI with Integrated Guaranteed CI premiums have been reduced by an average of 5.7%
- There are two different types of life insurance available from Norwich Union - level term life insurance and decreasing term life insurance. The type of life insurance you need will depend on your personal circumstances. Mortgage Life Insurance is a decreasing term life insurance plan designed specifically to protect a repayment (capital and interest) mortgage. Level term life insurance will pay out a specified cash sum if you die, or are diagnosed with a specified critical illness (CI option available at an additional cost) during the term of the plan. Mortgage Life Insurance will pay out a cash sum if you die, or are diagnosed with a specified critical illness (CI option available at an additional cost) during the plan term, which could help to pay off the outstanding balance of your mortgage. Over time, the level of life insurance provided by the plan falls to reflect your reducing mortgage loan, so you are only paying for the cover you need.
- There is no cash in value at any time on these plans.
- Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media