View more on these topics

NU aggregates £500,000 critical cover cap

Norwich Union is to extend its £500,000 cap on individual critical-illness cover to include other policies either with the company or with rivals.

From August last year, a £500,000 cap was put on individual CI applications which will be imposed on an aggregate basis from March, meaning that other policies are to be counted into the total cover offered.

Applications of more than £250,000 already have to go through financial underwriting but NU is changing applications forms so people have to make a declaration of existing cover.

There is also a cap of £250,000 imposed on non-working partners applying on an individual basis. If applying as part of a joint policy where the second life is non-working, subject to certain conditions such as being connected to a mortgage, the cap is set at £500,000.

Head of protection product development Lawrence Jackson says the caps manage risk better, aligning cover more closely with need, and are in line with competitors. He says: “Clearly, it is bad news to the consumer where we are imposing these restrictions but on the positive side, we are still able to offer guaranteed critical-illness terms to the market which appears to be the product of choice. It is the price to pay to still be able to offer what is an attractive product.”

Direct Life & Pensions sales and marketing director Richard Verdin says: “Using aggregated caps is a reasonable step to take for any insurer which is looking to manage its risk.”


Equitable should back campaign for Gvt compensation – action groups

Equitable Life Action groups have joined forces to strengthen calls for Equitable to back a campaign for Government compensation. Seven action groups have come together in a single movement called E7 which wants the society to put its weight behind calls for £3 billion of compensation from the Government. E7 spokeswoman Liz Kwantes says the […]

New buyers back in house market

House prices went up by 0.3 per cent in January following a 0.2 per cent rise in December, according to Hometrack&#39s monthly survey of the market. The biggest price rises were seen in Cornwall and South Yorkshire (1.1 per cent) followed by Hereford and Worcester and the West Midlands (0.9 per cent) and North Wales […]

Ritchie warning on A-Day delays

Scottish Equitable pensions development director Stewart Ritchie has described the Chancellor&#39s referral of the lifetime pension limit to the National Audit Office as bizarre but says advisers must still start planning for A-Day. Even though the final pension simplification rules will not be revealed until Budget day on March 17, Ritchie says advisers must start […]

…as figures show IFAs&#39 good record

Only 461 of 4,191 complaints made against IFAs reached an ombudsman, internal Financial Ombudsman Service figures have revealed. Once in front of an ombudsman, IFAs&#39 chances are 50:50, with 231 of the 461 cases finding against the IFA. FOS head of communications David Cresswell says 1,676 cases last year were settled in conciliation, recording no […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm