Norwich Union (NU) has hiked premiums on its guaranteed rates for critical illness (CI) cover. The ...
Norwich Union (NU) has hiked premiums on its guaranteed rates for critical illness (CI) cover.
The decision follows similar moves by the remaining insurers still providing guaranteed rates for CI insurance.
As a result, the cost of NU's mortgage life insurance with guaranteed CI cover has increased by an average of 8%. Rates for term assurance with guaranteed CI cover have also increased by an average of 12%.
"The main reason for the changes is in response to recent re-pricing activity in the critical illness market, where other providers have moved their rates," said Lawrence Jackson, head of protection product development at NU.
"This move will enable us to continue to offer guaranteed rates for critical illness, which continue to be popular in the market, in addition to the reviewable rates that we launched earlier this year."
All new business applications received by NU between 16 December 2003 and 15 January 2004 with a valid quotation dated between 15 November 2003 and 15 December 2003 will be processed at old rates.
Any applications received that are not accompanied by a valid quotation will be processed on the new rates.
