Norwich Union reviews protection premiums

Article date: 9 December 2003

Norwich Union has reviewed premiums on term assurance withcritical illness option and mortgage life insurance with criticalillness option following recent market changes. As a result of thereview, the following premium increases will be made from Tuesday16 December 2003:

  • Mortgage life insurance with guaranteed critical illness willincrease by an average of 8%
  • Term assurance with guaranteed critical illness will increaseby an average of 12%
  • Existing policyholders and pipeline business will not beaffected by these changes.

No other products in Norwich Union’s protection range areaffected.

Lawrence Jackson, head of protection product development atNorwich Union, said: "The main reason for the changes we areannouncing today is in response to recent re-price activity in thecritical illness market where other providers have moved theirrates. This move will enable Norwich Union to continue to offerguaranteed rates for critical illness, which continue to be popularin the market, in addition to the reviewable rates that we launchedearlier this year. "

Example Monthly Premiums

Term with CI Option

Current Premium

New Premium

Male NS 30 NB £100K 20yrs

£25.40

£28.20

Joint, NS, 35NB, £100K 20yrs

£68.70

£76.10

MLI with CI Option

Current Premium

New Premium

Male NS 35 NB £100K 20yrs

£25.57

£27.42

Joint NS, 30NB, £175K 25yrs

£60.34

£64.68

 

Transitional arrangements

Norwich Union pledges to honour pipeline business by providingfull 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 beprocessed on old rates.

New business

All new business applications received by Norwich Union from 16December up to 15 January with a valid quotation dated between15/11/03 and 15/12/03 will be processed on old rates.

To obtain the old rates, the application must be received on orbefore 15/01/04 and be accompanied by a valid client specificquotation produced between 15/11/03 and 15/12/03. This includesclient specific comparison quotes.

Any applications received that are not accompanied by a validquotation will be processed on the new rates.

-ends-

Press office contacts:
James Evans 08703 66 68 78Out 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

Norwich Union is the UK’s largest insurer. It is a leadingprovider of life, pensions and investment products and one of theleading IFA providers. IFAs provide around 70% of thecompany’s long-term savings business. Norwich Union hasstrategic alliances with building societies and other leading UKbrand names including Tesco Personal Finance and The Royal Bank ofScotland Group. Norwich Union’s news releases and aselection of images are available from Aviva's internet presscentre at www.aviva.com/media.

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