Norwich Union is reducing the premium rates on Term Assurance without integrated critical illness, term assurance with integrated guaranteed critical illness and mortgage life insurance with integrated guaranteed critical illness with effect from Wednesday 6 April 2005.
Norwich Union is reducing the premium rates on Term Assurance without integrated critical illness, term assurance with integrated guaranteed critical illness and mortgage life insurance with integrated guaranteed critical illness with effect from Wednesday 6 April 2005.
The percentage changes are as follows:
Term assurance with integrated guaranteed critical illness and Mortgage life insurance with integrated guaranteed critical illness premiums have been reduced by an average of 5.7 per cent, all premiums have been reduced. No premiums are being increased.
Term assurance without integrated critical illness premiums have been reduced by an average of 0.9%, nearly 92 per cent of premiums have reduced and just over 8 per cent of premiums are unchanged. No premiums 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 (without CI) | Current monthly premium | New monthly premium |
| Female, S, 45NB, 20 year term * Male, NS, 40NB, 10 year term | Ł34.00 Ł11.10 | Ł33.70 Ł11.00 |
| Term Assurance with integrated guaranteed CI | ||
| Male,NS, 40NB, 10 year term Female, NS, 35NB, 20 year term | Ł49.00 Ł36.90 | Ł46.20 Ł34.80 |
| Mortgage Life Insurance with integrated guaranteed CI | ||
| Male, NS, 45NB, 10 year term Joint, NS, 35NB, 20 year term | Ł50.72 Ł50.52 | Ł47.84 Ł47.64 |
-ends-
Press office contacts:
Lorna Wiltshire 07800 695 150
James Evans 01904 452 791 or 07800 699 525
Notes 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 10 January 2005 when an average decrease of 3 per cent was applied
- 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.