By Leo Bland Canada Life is to launch a mortgage and loan protection product including critical illn...
By Leo Bland
Canada Life is to launch a mortgage and loan protection product including critical illness cover by the autumn.
The product will offer decreasing term assurance with CI cover and will be aimed mainly at the mortgage market although it will be able to be used to cover personal and business loans. The life office is also to launch a standalone CI product aimed at loan protection. The minimum premium for both products will be £10 pm. Canada Life already offers term assurance-based mortgage protection.
Diana Harding, business development manager, protection, at Canada Life, said: "We saw that we had a gap in our product range, which is providing decreasing term assurance with critical illness cover. We are developing a product that will pay out on death or in
the event of critical illness, which offers guaranteed and reviewable rates.
"We have been told by some of the banks that the average term for a business loan is 10 years
and this product would be suitable for that. It would also work for short-term loans as well such as car loans. But the mortgage market would be the main market for this product."
Canada Life saw its UK IFA new business increase by 42.7% in the first quarter of this year. The group saw its individual income protection sales increase by 44% year on year. Group life sales
are up 28% while group income protection business is up 100%.
