Norwich Union is cutting its term assurance and mortgage protection rates by up to 20%. Mortgage Pro...
Norwich Union is cutting its term assurance and mortgage protection rates by up to 20%.
Mortgage Protection with Critical Illness has been cut by up to 20% and Term Assurance with Critical Illness has been reduced by up to 15%. A Mortgage Repayment Guarantee has also been introduced that promises to pay off the balance of any outstanding mortgage loan, should a claim arise, providing that the interest rate of the loan is 10% or lower when the mortgage is taken out.
This announcement is the second rate reduction to be made within a month and follows an earlier reduction of up to 25% which was announced on 1 November.
John Enos, director of IFA sales, said: "Our commitment to this market is demonstrated in our active monitoring of the marketplace, supported by our established and rapid re-pricing process. We are continually driving down costs by investing in state-of-the-art systems and introducing first class product services."
Royal & SunAlliance has also announced rate cuts of up to 70% on its Lifewise level term assurance.
The new rates are available for both family and business cover. New underwriting limits mean that clean applications of up to £500,000 may not require further medical evidence for applicants up to the age of 45.
On a business loan protection policy with a five-year term with a £550,000 sum assured for a female non-smoker aged 37 next birthday, the monthly premium falls 52%, from £51.24 to £24.94.
On a family protection policy with a 15-year term and £250,000 sum assured, for a male aged 45 next birthday and female aged 40 next birthday, both non-smokers, the monthly premium falls by 37% from £107.50 to £67.86.
Mark Edwards, IFA personal market leader at Royal & SunAlliance, said: "The cost of life cover continues to fall as life offices pass on the benefits of improving mortality. This is good news for consumers.
"Our business protection package is particularly strong and we believe this market has excellent growth potential for IFAs. UK businesses continue to take risks by not adequately covering key employees who are critical to their long-term success. This provides IFAs with an excellent opportunity to help businesses understand the covers available and the benefits."
