Norwich Union will be launching (13 August) a new highly flexible, menu based protection policy to cover the increasing demand for protection fuelled by the boom in repayment mortgages.
Norwich Union will be launching (13 August) a new highly flexible, menu based protection policy to cover the increasing demand for protection fuelled by the boom in repayment mortgages.
According to the Council of Mortgage Lenders around 68% of new mortgages are now on a repayment basis. As repayment mortgages do not have protection built in, Norwich Union has designed its Mortgage Life Insurance plan, to offer life insurance and critical illness, sickness and disability cover.
- Introductory offer of three per cent discount on Life and Integrated Critical Illness premiums
- Flexible and simple – can be changed to meet lifestyle changes
- Modular structure to identify the cost of each individual component of the plan
- Before the plan comes into force; (after acceptance) free life cover between exchange of contracts and completion of the purchase
- Joint plan can be split into two single life plans on separation
- Full details are available by visiting the website on www.norwich-union.co.uk or by calling 0800 015 2530
As the trend continues towards repayment mortgages Norwich Union commissioned some research amongst working mothers which suggests that around 79% of families have life cover to protect their mortgages, but many of these will be through existing endowment policies. While 44 per cent of mothers worry most about losing their health, only 28 per cent of families say they have critical illness cover. In fact, adults are four times more likely to contract a serious illness and survive, than they are to die from the illness**.
Also, due to the fact that many marriages and partnerships do not last and dissolve, the new Mortgage Life Insurance plan offers the facility to split into two single plans on separation.
Willie Mowatt, head of protection at Norwich Union, commented: “It is vital that, as repayment mortgages become more popular, more people are not gambling with their homes.
Mortgage Life Insurance is designed to be flexible and easy to understand, as well as highly competitive on rates. The product can be shaped to fit around people’s changing lifestyles so it moves with their mortgage and reflects changes in people’s circumstances”.
Norwich Union’s Mortgage Life Insurance offers:
- Life Insurance: Decreasing cover, to match the outstanding portion of the loan.
- Terminal Illness benefit: Terminal Illness cover is payable on diagnosis of a terminal illness where life expectancy is less than one year. Terminal Illness cover is not paid in the final 18 months of the contract.
- Critical Illness cover (Integrated i.e. decreasing and/or independent i.e. level): Providing a lump sum on diagnosis of a specified critical illness.
- Premium Protection Paying plan payments, if the plan holder cannot work because of illness or injury.
- Mortgage Payment protection: Paying mortgage payments, if the plan holder cannot work because of illness or injury.
- Flexibility to cover home improvements and house moves: The Mortgage Life Insurance plan allows a new plan to be taken out at no extra cost to cover a home improvement or new property.
- Flexibility on separation:
Two people covered by a joint plan can split it into two single life plans on separation. This maintains cover if one person takes over the mortgage, or both to buy separate properties.
Notes to Editors
- 1 in 4 males and 1 in 6 females aged 30 will suffer a critical illness such as cancer, heart attack or stroke before the age of 65.*
- 1 in 10 males and 1 in 33 females aged 30 will suffer a heart attack before they are 65.*
- I in 10 males and 1 in 8 females aged 30 will contract cancer before they are 65.*
- 1 in 21 males and 1 in 32 females aged 30 will have a stroke before they are 65.*
- Despite all this it is estimated that less than 12% of the UK working population held critical illness policies during 2000.*
- Fieldwork for research undertaken by Norwich Union took place during July 2001
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK’s largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world’s sixth largest insurer based on gross worldwide premiums.
- CGNU’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł200 billion.
- From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- CGNU’s news releases are available on the internet on this site
- A selection of images are available on the CGNU site of Newscast at www.newscast.co.uk
* Source: GE Frankona – May 2001
** Source: derived from Cancer Registrations, Morbidity in General Practise and Cause of Death Statistics (collated by the Office of National Statistics). Adjusted to reflect approximate mortality trends to the present day by Swiss Re Life & Health actuaries April 2000.
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