Norwich Union has reviewed premiums on term assurance with critical illness option and mortgage life insurance with critical illness option following recent market changes.
Norwich Union has reviewed premiums on term assurance with critical illness option and mortgage life insurance with critical illness option following recent market changes. As a result of the review, the following premium increases will be made from Tuesday 16 December 2003:
- Mortgage life insurance with guaranteed critical illness will increase by an average of 8%
- Term assurance with guaranteed critical illness will increase by an average of 12%
- Existing policyholders and pipeline business will not be affected by these changes.
No other products in Norwich Union’s protection range are affected.
Lawrence Jackson, head of protection product development at Norwich Union, said: "The main reason for the changes we are announcing today is in response to recent re-price activity in the critical illness market where other providers have moved their rates. This move will enable Norwich Union to continue to offer guaranteed rates for critical illness, which continue to be popular in the market, in addition to the reviewable rates that we launched earlier this year. "
Example Monthly Premiums
| Term with CI Option | Current Premium | New Premium |
| Male NS 30 NB Ł100K 20yrs | Ł25.40 | Ł28.20 |
| Joint, NS, 35NB, Ł100K 20yrs | Ł68.70 | Ł76.10 |
| MLI with CI Option | Current Premium | New Premium |
| Male NS 35 NB Ł100K 20yrs | Ł25.57 | Ł27.42 |
| Joint NS, 30NB, Ł175K 25yrs | Ł60.34 | Ł64.68 |
Transitional arrangements
Norwich Union pledges to honour pipeline business by providing full transitional arrangements for:
- Term assurance with critical illness option
- Mortgage Life Insurance with critical illness options
Pipeline business
Applications received by Norwich Union up to 15 December will be processed on old rates.
New business
All new business applications received by Norwich Union from 16 December up to 15 January with a valid quotation dated between 15/11/03 and 15/12/03 will be processed on old rates.
To obtain the old rates, the application must be received on or before 15/01/04 and be accompanied by a valid client specific quotation produced between 15/11/03 and 15/12/03. This includes client specific comparison quotes.
Any applications received that are not accompanied by a valid quotation will be processed on the new rates.
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Press office contacts:
James Evans 08703 66 68 78 Out of hours 07790 487105
Lorna Wiltshire 08703 66 68 78 Out of hours 07788 471849
Louise Goffee 08703 66 68 70 Out of hours 07810 057362
David Gwyer 08703 66 68 71 Out of hours 07800 699508
Notes to Editors