Norwich Union has announced a series of price reductions across its Mortgage Life Insurance (MLI) and Term Assurance product ranges.
Norwich Union said the move is designed to help those feeling the effects of the credit crunch and could ease the financial burden for the average house buyer. The reprice has focused particularly on providing affordable cover for sums assured of Â£175,000 and above. Notably the average house price now stands at Â£183,959.
Those purchasing policies with critical illness cover will benefit in particular.
Decreasing term insurance with CI cover has been cut by an average of 3%, while level term with CI cover has seen an average cut in rates of around 2%.
To further help customers, the reprice will include MLI and term assurance policies lasting longer than the traditional 25 year lending term. This reflects changes in market demand, which has seen increasing numbers of consumers requesting cover for 30 or 40-year mortgages.
Darren Dicks, head of protection marketing for Norwich Union, says: “We constantly review all of our protection products to make them as competitive as we can to the widest possible audience. This latest reprice brings welcome news to the UK’s 12 million mortgage holders, at a time when many people are feeling the pinch.
“There is still a huge demand for people to get on and move up the housing ladder with around a quarter of a million mortgages(3) taken out in the last quarter alone. The credit crunch has meant that money is tighter for a lot of mortgage holders, so we are delighted if we can help people to save in other areas.”
Example rates under the reprice are as follows:
The following quotes refer to Mortgage Life Insurance (MLI) with Guaranteed CI product for a healthy 35 year old 25 year term policy with a sum assured of Â£183,959.