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Bright Grey puts years on its life and critical terms

Bright Grey is to extend the maximum term of its life and critical-illness cover from 25 years up to 40 years in response to demand from advisers wanting longer-term protection for their clients.

The changes took place at the end of October, with reviewable rate life or critical-illness cover increasing to a maximum 40-year term, and guaranteed rate life or critical-illness cover increasing to 30 years.

Bright Grey distribution director Andy Peters says: “The traditional 20-25-year term is simply no longer affordable for many people and mortgage lenders are increasingly offering longer-term mortgages to help people get into the property market and own their own home.

“Recent research carried out for us shows that more than 40 per cent of people who bought their first property in the past 12 months have taken out a mortgage for a term of more than 25 years, and a third have used up all of their savings buying their property.”

CBK principal Peter Chadborn says: “This is a great initiative as very few providers offer a longer protection-term option. It is shocking in the amount of cases I see where a single-tied adviser from a bank has sold a 25-year mortgage protection against a 30-year mortgage. More people are taking out 30 and 40-year mortgages and protection providers need to respond to this.”

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