Norwich Union is introducing changes to some of its protection policies from today. These include an increase to the maximum period that cover is available on some critical illness policies and the introduction of the Association of British Insurers’ (ABI) best practice definitions for critical illness cover.
- Increased maximum term on protection policies with reviewable critical illness
- Introducing ABI Statement of Best Practice definitions for critical illness policies
Norwich Union is introducing changes to some of its protection policies from today. These include an increase to the maximum period that cover is available on some critical illness policies and the introduction of the Association of British Insurers’ (ABI) best practice definitions for critical illness cover.
The maximum period that cover is available on Norwich Union Term Assurance with reviewable critical illness will be increased from 25 to 50 years1 and Norwich Union Mortgage Life Insurance with reviewable critical illness will be increased from 25 to 40 years2. The increase in the maximum period of cover for these products meets the needs of a changing mortgage market, with mortgages of longer than 25 years becoming commonplace.
Norwich Union will also introduce the ABI’s Statement of Best Practice definitions for critical illness policies. These include the use of more descriptive standard information about critical illnesses in marketing material, providing greater clarity around which conditions are covered and which are not. They will also provide greater consistency across the industry, helping advisers compare critical illness policies from different providers.
Paul Dalgliesh, protection marketing manager at Norwich Union, said: “Inflation in the housing market has meant more and more people are arranging mortgages for periods over 25 years, and in many cases it’s the only way people can get on the property ladder. Extending the terms of our mortgage related reviewable critical illness cover provides customers and advisers with more choice and flexibility and a product that’s suited to today’s mortgage market.
“At the same time we are implementing the ABI’s critical illness definitions ahead of the 30 April deadline. We believe that these will provide clarity and consistency across the industry and will benefit customers and advisers alike.
“These developments, along with other related initiatives, such as our publication of critical illness claims statistics, underlines Norwich Union’s commitment to this important market.”
-ends-
Press office contacts:
Rob Pell 01904 452659 Out of hours 07800 699563
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
1 Norwich Union Term Assurance, which provides a level benefit payable on death within the term of the contract, is also available with critical illness cover. Where critical illness cover is chosen, the premiums for this cover may be guaranteed or reviewable. Term Assurance with reviewable critical illness cover premiums can now be purchased with a term up to 50 years (previously 25 years). Term Assurance with guaranteed critical illness premiums can be purchased with a term up to 25 years (as previously). The plan has no cash-in value at any time.
2 Norwich Union Mortgage Life Insurance, which provides a decreasing benefit payable on death within the term of the contract, is also available with critical cover. Where critical illness cover is chosen, the premiums for this cover may be guaranteed or reviewable. Mortgage Life Insurance with reviewable critical illness cover premiums can now be purchased with a term up to 40 years (previously 25 years). Mortgage Life Insurance with guaranteed critical illness premiums can be purchased with a term up to 25 years (as previously). The plan has no cash-in value at any time.
Life and critical illness cover pays out a lump sum if you either die or are diagnosed with a critical illness that meet our policy definition. We only cover the critical illnesses we define in our plan and no other
About Norwich Union
- Norwich Union is 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 is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.