Article date: 30 March 2005
Norwich Union is reducing the premium rates onTerm Assurance without integrated critical illness, term assurancewith integrated guaranteed critical illness and mortgage lifeinsurance with integrated guaranteed critical illness with effectfrom Wednesday 6 April 2005.
The percentage changes are as follows:
Term assurance with integrated guaranteedcritical illness and Mortgage life insurance with integratedguaranteed critical illness premiums have been reduced by anaverage of 5.7 per cent, all premiums have been reduced. Nopremiums are being increased.
Term assurance without integrated critical illness premiums havebeen reduced by an average of 0.9%, nearly 92 per cent of premiumshave reduced and just over 8 per cent of premiums are unchanged. Nopremiums have been increased.
- Premium changes for specific cases will vary. The examplesbelow illustrate typical changes for policies with £100,000 sumassured:
Term assurance (withoutCI)
Female, S, 45NB,20 year term *
Male, NS, 40NB,10 year term
TermAssurance with integrated guaranteed CI
Male,NS, 40NB,10 year term
Female, NS,35NB, 20 year term
Mortgage LifeInsurance with integrated guaranteed CI
Male, NS, 45NB,10 year term
Joint, NS, 35NB,20 year term
Press office contacts:
Lorna Wiltshire07800 695 150
James Evans 01904 452 791 or 07800 699 525
Notes to editors
- * ‘NS’ and ‘S’ denotes Non Smoker andSmoker Rates ‘NB’ denotes quote based on customers ageat next birthday.
- The premium charged depends on the age, sum assured and otherrelevant underwriting criteria.
- Term assurance premium rates were last reviewed on 10 January2005 when an average decrease of 3 per cent was applied
- There are two different types of life insurance available fromNorwich Union - level term life insurance and decreasing term lifeinsurance. The type of life insurance you need will depend on yourpersonal circumstances. Mortgage Life Insurance is a decreasing term life insurance plan designed specifically toprotect a repayment (capital and interest) mortgage. Level termlife insurance will pay out a specified cash sum if you die, orare diagnosed with a specified critical illness (CI option available at an additional cost)during the term of the plan. Mortgage Life Insurance will pay outa cash sum if you die, or are diagnosed with a specified critical illness (CI option available at an additional cost)during the plan term, which could help to pay off the outstandingbalance of your mortgage. Over time, the level of life insuranceprovided by the plan falls to reflect your reducing mortgage loan,so you are only paying for the cover you need.
- There is no cash in value at any time on these plans.
- Norwich Union is the UK’s largest insurer. It is aleading provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 70% of thecompany’s long-term savings business.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of imagesare available from Aviva's internet press centre at www.aviva.com/media.