With effect from 26 January mortgage life insurance with guaranteed critical illness premiums will increase by an average of 3%. At the same time Angioplasty cover is being withdrawn from the list of definitions on all critical illness products, along with changes to the maximum term * (to 25 years) and maximum expiry age (to 65 years). Existing policies will not be affected.
With effect from 26 January mortgage life insurance with guaranteed critical illness premiums will increase by an average of 3%. At the same time Angioplasty cover is being withdrawn from the list of definitions on all critical illness products, along with changes to the maximum term * (to 25 years) and maximum expiry age (to 65 years). Existing policies will not be affected.
Angioplasty is a procedure that opens up arteries to the heart that have become narrowed. It is not an illness in itself, but is a treatment to alleviate the symptoms of an illness (coronary artery disease) which if left untreated is likely to significantly increase the likelihood of a heart attack occurring. Medical techniques have improved and angioplasty is now a relatively straightforward procedure. Recovery times are short with a normal in-patient stay being only two or three days. For these reasons angioplasty no longer fits the definition of a critical illness.
Lawrence Jackson, head of protection development at Norwich Union, said: "It is clear that consumers and intermediaries like to have choice when considering critical illness cover. We therefore believe it is important to make these changes to rates and policy conditions in order for us to continue to be able to offer customers the choice of either guaranteed or reviewable rates."
Transitional Arrangements
Pipeline Business
Applications received by Norwich Union up to and including 25 January 2004 will be processed on old rates and the original terms and conditions will apply.
Pipeline business with valid acceptance terms already issued will not be affected by these changes. If existing acceptance terms expire or changes are made on or after 26 January, new terms and conditions may apply.
New Business
All new business applications received by Norwich Union between 26 January 2004 and 25 February 2004 with a valid quotation dated between 26 December 2003 and 25 January 2004 will be processed on old rates and the original terms and conditions will apply.
| Example Premium | Current Monthly Premium | New Monthly Premium |
|---|---|---|
| Mortgage life insurance & guaranteed critical illness | ||
| Joint Lives, healthy, NS, 40nb, Ł150k, 25 yrs | Ł123.03 | Ł126.18 |
-ends-
Press office contacts:
Lorna Wiltshire 01904 723236 Out of hours 07788 471849
James Evans 01904 452791 Out of hours 07790 487105
Louise Goffee 01904 452617 Out of hours 07810 057362
David Gwyer 01904 452828 Out of hours 07800 699508
Rob Pell 01904 452659 Out of hours 07968 934091
Notes to Editors
* Existing terms on critical illness products up to and including 25 January 2004 are:
Maximum expiry age
Mortgage life insurance with critical illness – 69 years
Term with critical illness – 74 years
Maximum term
Mortgage life insurance with critical illness – 40 years
Term with critical illness – 50 years
Subject to maximum expiry ages.
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.