Article date: 15 February 2006
Norwich Union has reduced the premium rateson the majority of protection products with effect from 13 February2006. The changes to premium rates are as follows:
- Term assurance without integrated guaranteed criticalillness - 11% of premiums have been reduced, 84% remainunchanged and 5% have been increased (average effect on premiumsis neutral).
- Term assurance with integrated guaranteed criticalillness - 53% of premiums have been reduced, 16% remainunchanged and 31% have been increased (premiums reduced by anaverage of 1.4%).
- Mortgage life insurance without integrated guaranteedcritical illness – 76% of premiums have been reduced,23% remain unchanged and 1% have been increased (premiumsreduced by an average of 2%).
- Mortgage life insurance with integrated guaranteed criticalillness – 81% of premiums have been reduced, 9% remainunchanged and 10% have been increased (premiums reduced by anaverage of 1%).
Mike Kirsch, commercial and marketingdirector, Norwich Union Life, said: “We are committed toproviding competitive products in the protection market. This newpricing structure will allow advisers to continue to provide theirclients with great value protection products from NorwichUnion”.
Changes in premiums will vary for eachspecific case, as reflected by the examples below:
Current monthly premium
New monthly premium
Term assurance (without CI)
Joint, non-smoker, 35nb, £175,000, 10yr term
Term assurance (with integrated CI)
Joint, smoker, 35nb, £100,000, 10yr term
MLI (without CI)
Female, non-smoker, 55nb, £100,000, 15yr term
MLI (with integrated CI)
Joint, non-smoker, 40nb, £100, 000, 15yr term
Press office contacts:
David Gwyer 01904 452828 Outof hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525
Rob Pell 01904 452659 Out of hours 07800 699563
Cheryl Cox 01904 452617 Out of hours 07800 695275
Notes to editors:
- "NS" and "S" denotes Non Smoker and Smoker Rates "NB" denotesquote based on customer’s age at next birthday.
- The premium charged depends on the age, sex, policy term, sumassured and other relevant underwriting criteria.
- 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 decreasingterm life insurance plan designed specifically to protect arepayment (capital and interest) mortgage. During the term of theplan level term life insurance will pay out a specified cash sumif you die, or are diagnosed with a specified critical illness, ifyou have chosen this option (CI option available at an additionalcost).
- During the term of the plan Mortgage Life Insurance will payout a cash sum if you die, or are diagnosed with a specifiedcritical illness, if you have chosen this option (CI optionavailable at an additional cost), which could help to pay off theoutstanding balance of your mortgage. Over time, the level of lifeinsurance provided by the plan falls to reflect your reducingmortgage loan, so you are only paying for the cover youneed.
- There is no cash in value at any time on these plans.
About Norwich Union
Norwich Union theUK's largest insurer. It is a leading provider of life, pensionsand investment products and one of the largest Financial Adviser(FA) providers. FAs provide over 70% of the company's long-termsavings business in the UK.
Norwich Union has strategic alliances with building societies andother leading UK brand names including CIS and The Royal Bank ofScotland Group. Norwich Union’s news releases and a selectionof images are available from Aviva's internet press centre atwww.aviva.com/media.