Norwich Union has reduced the premium rates on the majority of protection products with effect from 13 February 2006.
Norwich Union has reduced the premium rates on the majority of protection products with effect from 13 February 2006. The changes to premium rates are as follows:
- Term assurance without integrated guaranteed critical illness - 11% of premiums have been reduced, 84% remain unchanged and 5% have been increased (average effect on premiums is neutral).
- Term assurance with integrated guaranteed critical illness - 53% of premiums have been reduced, 16% remain unchanged and 31% have been increased (premiums reduced by an average of 1.4%).
- Mortgage life insurance without integrated guaranteed critical illness – 76% of premiums have been reduced, 23% remain unchanged and 1% have been increased (premiums reduced by an average of 2%).
- Mortgage life insurance with integrated guaranteed critical illness – 81% of premiums have been reduced, 9% remain unchanged and 10% have been increased (premiums reduced by an average of 1%).
Mike Kirsch, commercial and marketing director, Norwich Union Life, said: “We are committed to providing competitive products in the protection market. This new pricing structure will allow advisers to continue to provide their clients with great value protection products from Norwich Union”.
Example rates
Changes in premiums will vary for each specific case, as reflected by the examples below:
|
| Current monthly premium | New monthly premium |
| Term assurance (without CI) Joint, non-smoker, 35nb, Ł175,000, 10yr term | Ł17.22 | Ł17.05 |
| Term assurance (with integrated CI) Joint, smoker, 35nb, Ł100,000, 10yr term | Ł78.10 | Ł77.00 |
| MLI (without CI) Female, non-smoker, 55nb, Ł100,000, 15yr term | Ł25.57 | Ł25.05 |
| MLI (with integrated CI) Joint, non-smoker, 40nb, Ł100, 000, 15yr term | Ł61.86 | Ł61.24 |
-ends-
Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525
Rob Pell 01904 452659 Out of hours 07800 699563
Cheryl Cox 01904 452617 Out of hours 07800 695275
Notes to editors:
- "NS" and "S" denotes Non Smoker and Smoker Rates "NB" denotes quote based on customer’s age at next birthday.
- The premium charged depends on the age, sex, policy term, sum assured and other relevant underwriting criteria.
- 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. During the term of the plan level term life insurance will pay out a specified cash sum if you die, or are diagnosed with a specified critical illness, if you have chosen this option (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, if you have chosen this option (CI option available at an additional cost), 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.
About Norwich Union
Norwich Union the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS 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.