Canada Life is cutting its term assurance rates, including its class one level, renewable and mortga...
Canada Life is cutting its term assurance rates, including its class one level, renewable and mortgage protection term assurance premiums, across the board by up to 18%.
The group will also be changing the definition of a smoker to include anyone who uses or has used tobacco in the last 12 months. Canada Life said that the risks for cigar and pipe smokers, previously categorised as non-smokers, are known to be less than for regular cigarette smokers but there is still a bigger health risk than for those who do not smoke at all.
Diana Harding, business development manager, protection at Canada Life, said: "Protection continues to be one of Canada Life's core areas.
"At a time when interest rates are low, it is imperative that people take advantage of the low cost of life assurance to allow their dependants to maintain their lifestyle.
"The change to the definition of a smoker recognises the dangers to users of any form of tobacco. Changing our definition has helped us make significant cuts to non-smoker rates. However, it has not prevented us from making cuts to the rates for smokers. These are also very competitive.
"Our change of definition brings us in line with the majority of companies who classify users of any form of tobacco as smokers."
For a 15 year term policy with a £150,000 sum assured bought by a female smoker aged 48 next birthday, the monthly premium falls by 13% to £52.70 from £60.65.
On a mortgage protection policy with a 10 year term and a £200,000 sum assured, purchased by a male smoker aged 40 next birthday the monthly premium falls by 13% to £31.40 from £36. On a 15 year level term contract with a £250,000 sum assured for a male non-smoker aged 30 next birthday, the premium falls by 10% to £15.75 from £17.50.
IFAs can obtain quotes from the eXchange or by calling Canada Life on 0345 226232 or visiting www.canadalife.co.uk.
