A new style decreasing term assurance plan has been launched by Zurich. The provider claims the prod...
A new style decreasing term assurance plan has been launched by Zurich. The provider claims the product, Allied Dunbar Decreasing Mortgage Cover Plan, gives a more adaptable approach to mortgage protection.
The main feature of the plan is that policyholders can switch between decreasing and level term cover without further underwriting. This means that if policyholders change the type of mortgage they have or if they repay it, they can switch the style of their cover to meet their new needs.
The plan is available from 1 March via the Zurich Advice network and Zurich Mortgage Network.
Richard Coulson, Zurich Mortgage Network director, said the plan offered a unique proposition. "A flexible vehicle for mortgage protection is a number one priority for our advisers and their clients. There are a number of plans providing decreasing term assurance, but I do not believe there are any which offer such a comprehensive range of benefits and options."
Additional features include the option to add payment protection benefit, waiver of contribution and total permanent disability cover. Policyholders can change benefits on their plan during the term. Available on a joint or single life basis, the minimum term is five years and maximum of 40 years for a sum equal to the amount outstanding on the mortgage.
Zurich is also offering up to three months' free life and critical illness cover to policyholders between the period of exchange and completion.
