By Robyn Hall CGU Life has cut its level term assurance and mortgage protection rates in the latest ...
By Robyn Hall
CGU Life has cut its level term assurance and mortgage protection rates in the latest move in the term cover price war
CGU Life is slashing the cost of cover by almost £10 per month for many policyholders and will guarantee the lower level premium for the duration of the policy
Although the cost of cover will depend on individual circumstances, the level and period of cover required, the rate reduction will cut up to £9.74 off a monthly bill for many equivalent to £116.88 over the course of a year
Male non-smokers in good health and aged 40 next birthday will now pay £43.42 for cover of £250,000 for 20 years. This cover would have previously cost £52.46 a month
A non-smoking couple in good health, both aged 30, can now protect a 25-year £70,000 repayment loan for £9.07 pm. Previously the cost was £9.77 pm
All CGU Life term assurances feature built-in terminal illness benefit which means that the sum assured will be paid out if the policyholder is diagnosed as having only 12 months or less to live and the policy has more than 18 months to run, rather than upon death
An additional benefit to corporate customers is CGU's Temporary Life Cover, which is used to protect business loans between submitting a proposal and completion of full underwriting. Critical illness cover is also available as an optional extra, ensuring the mortgage loan is repaid on diagnosis of serious illness, including heart attack, stroke or cancer
John Enos, IFA marketing and strategy manager at CGU Life, said: "These latest reductions in our level terms and mortgage protection rates secure our position as a major protection provider and ensure that we remain competitive in key areas of the protection and mortgage markets
Enos added: "The changes demonstrate our commitment to give top value for money to IFAs and their customers
"This rate cut is also further evidence of our commitment to pass on the savings made through the CGU Electronic Term initiative
CGU Life's commission rates on the policies are based on 100% of Lautro rates plus uplift
The life office is the latest in a series of product providers to cut term and protection rates
Both Permanent Insurance and Legal & General slashed premium rates in July as the battle for new IFA business heats up
Permanent cut its premiums on income protection products by up to 45% and Legal & General cut the cost of its mortgage payment protection insurance by up to 16
