Article date: 12 February 2007
- Increased maximum term on protection policies with reviewablecritical illness
- Introducing ABI Statement of Best Practice definitions forcritical illness policies
Norwich Union is introducing changes to someof its protection policies from today. These include an increase tothe maximum period that cover is available on some critical illnesspolicies and the introduction of the Association of BritishInsurers’ (ABI) best practice definitions for criticalillness cover.
The maximum period that cover is availableon Norwich Union Term Assurance with reviewable critical illnesswill be increased from 25 to 50 years1 and Norwich UnionMortgage Life Insurance with reviewable critical illness will beincreased from 25 to 40 years2. The increase in themaximum period of cover for these products meets the needs of achanging mortgage market, with mortgages of longer than 25 yearsbecoming commonplace.
Norwich Union will also introduce theABI’s Statement of Best Practice definitions for criticalillness policies. These include the use of more descriptivestandard information about critical illnesses in marketingmaterial, providing greater clarity around which conditions arecovered and which are not. They will also provide greaterconsistency across the industry, helping advisers compare criticalillness policies from different providers.
Paul Dalgliesh, protection marketing managerat Norwich Union, said: “Inflation in the housing market hasmeant more and more people are arranging mortgages for periods over25 years, and in many cases it’s the only way people can geton the property ladder. Extending the terms of our mortgage relatedreviewable critical illness cover provides customers and adviserswith more choice and flexibility and a product that’s suitedto today’s mortgage market.
“At the same time we are implementingthe ABI’s critical illness definitions ahead of the 30 Aprildeadline. We believe that these will provide clarity andconsistency across the industry and will benefit customers andadvisers alike.
“These developments, along with otherrelated initiatives, such as our publication of critical illnessclaims statistics, underlines Norwich Union’s commitment tothis important market.”
Press office contacts:
Rob Pell 01904452659 Out of hours 07800 699563
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
1 Norwich Union Term Assurance, which provides alevel benefit payable on death within the term of the contract, isalso available with critical illness cover. Where critical illnesscover is chosen, the premiums for this cover may be guaranteed orreviewable. Term Assurance with reviewable critical illness coverpremiums can now be purchased with a term up to 50 years(previously 25 years). Term Assurance with guaranteed criticalillness premiums can be purchased with a term up to 25 years (aspreviously). The plan has no cash-in value at any time.
2 Norwich Union Mortgage Life Insurance, whichprovides a decreasing benefit payable on death within the term ofthe contract, is also available with critical cover. Where criticalillness cover is chosen, the premiums for this cover may beguaranteed or reviewable. Mortgage Life Insurance with reviewablecritical illness cover premiums can now be purchased with a term upto 40 years (previously 25 years). Mortgage Life Insurance withguaranteed critical illness premiums can be purchased with a termup to 25 years (as previously). The plan has no cash-in value atany time.
Life and critical illness cover pays out a lump sum if youeither die or are diagnosed with a critical illness that meet ourpolicy definition. We only cover the critical illnesses we definein our plan and no other
About Norwich Union
- Norwich Union is the UK’s largest insurer. It is a leadingprovider of life, pensions and investment products and one ofthe largest Financial Adviser (FA) providers. FAs provide over70% of the company's long-term savings business in the UK.
- Norwich Union is the UK’s largest general insurer with amarket share of around 14%, with a focus on insurance forindividuals and small businesses.
- Norwich Union’s news releases and a selection of imagesare available from Aviva's internet press centre at www.aviva.com/media.