Article date: 25 July 2007
- 87% of Norwich Union's Mortgage Life Insurance policies now in top three low cost providers
As soaring interest rates see increasing numbers struggling to get on the property ladder, Norwich Union has today announced price changes across its Mortgage Life Insurance (MLI) range, offering greater competitiveness to the vast majority of customers.
The protection reprice today means that 87% of Norwich Union's MLI policies can now be found amongst the top three low-cost providers, compared to 20% before the reprice*. This should be particularly good news for homeowners, many of whom have seen their mortgage payments rise steadily over recent months.
Darren Dicks, head of protection marketing for Norwich Union, says: "As mortgage repayments are increasing, some people are feeling the pinch and there is evidence to suggest that some may even be sacrificing protection payments in order to cope with rising housing costs. This year's Swiss RE Term and Health watch report highlights that 51% of term policies were mortgage-related in 2006 compared to 58% in 2005 which suggests this could be starting to happen.
"This is something we advise strongly against, which is why we are constantly reviewing all of our protection products to enable us to stay as competitive as possible within this market. Furthermore, decreasing policies such as MLI generally offer customers a more affordable option, as the cover reduces along with the mortgage, so people should not need to take the risk of going without insurance."
All Norwich Union MLI products have the added advantage of being flexible, so they can be moved with the customer or adapted as their circumstances change. For more Information on this and other products, visit http://www.norwichunion.com/
Example rates under the reprice are as follows:
MLI (without CI)
Male, Non-smoker, 40 nb, 20 year term, £100,000
MLI with Guaranteed CI
Male, Smoker, 40 nb, 20 year term, £100,000
MLI with Guaranteed CI
Female, Non-smoker, 40 nb, 20 year term, £100,000
MLI with Reviewable CI
Female, Smoker, 40 nb, 20 year term, £100,000
Mortgage Life Insurance pays out a decreasing lump sum on death during the plan term. The plan has no cash in value at any time. The cost will depend on the level and period of cover chosen, in addition to the customer's personal circumstances.
Press office contacts:
Sarah Horner 01904 452828 Out of hours 07800 691569
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
* Position before re-price and estimated position after re-price is based on premium data as available 2 July 2007.
About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK's largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.