Norwich Union reviews critical illness benefits

Article date: 19 January 2004

With effect from 26 January mortgage life insurance withguaranteed critical illness premiums will increase by an average of3%. At the same time Angioplasty cover is being withdrawn from thelist of definitions on all critical illness products, along withchanges to the maximum term * (to 25 years) and maximum expiry age(to 65 years). Existing policies will not be affected.

Angioplasty is a procedure that opens up arteries to the heartthat have become narrowed. It is not an illness in itself, but is atreatment to alleviate the symptoms of an illness (coronary arterydisease) which if left untreated is likely to significantlyincrease the likelihood of a heart attack occurring. Medicaltechniques have improved and angioplasty is now a relativelystraightforward procedure. Recovery times are short with a normalin-patient stay being only two or three days. For these reasonsangioplasty no longer fits the definition of a criticalillness.

Lawrence Jackson, head of protection development at NorwichUnion, said: "It is clear that consumers and intermediaries like tohave choice when considering critical illness cover. We thereforebelieve it is important to make these changes to rates and policyconditions in order for us to continue to be able to offercustomers the choice of either guaranteed or reviewable rates."

Transitional Arrangements

Pipeline Business

Applications received by Norwich Union up to and including 25January 2004 will be processed on old rates and the original termsand conditions will apply.

Pipeline business with valid acceptance terms already issuedwill not be affected by these changes. If existing acceptance termsexpire or changes are made on or after 26 January, new terms andconditions may apply.

New Business

All new business applications received by Norwich Union between26 January 2004 and 25 February 2004 with a valid quotation datedbetween 26 December 2003 and 25 January 2004 will be processed onold rates and the original terms and conditions will apply.

Example PremiumCurrent Monthly PremiumNew Monthly Premium
Mortgage life insurance & guaranteed criticalillness  
Joint Lives, healthy, NS, 40nb, £150k, 25 yrs£123.03£126.18


Press office contacts:
Lorna Wiltshire01904 723236 Out of hours 07788 471849
James Evans 01904 452791 Out of hours 07790 487105
Louise Goffee 01904 452617 Out of hours 07810 057362
David Gwyer 01904 452828 Out of hours 07800 699508
Rob Pell 01904 452659 Out of hours 07968 934091

Notes to Editors
* Existing terms on criticalillness products up to and including 25 January 2004 are:

Maximum expiry age
Mortgage life insurance withcritical illness – 69 years
Term with critical illness – 74 years

Maximum term
Mortgage life insurance with criticalillness – 40 years
Term with critical illness – 50 years
Subject to maximum expiry ages.

  • Norwich Union is the UK's largest insurer. It is theUK's largest provider of life, pensions and investment productsand one of the leading IFA providers. IFAs provide around 75% ofthe company's long-term savings business in the UK
  • 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

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