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NU ends stand-alone guarantee on critical cover

Norwich Union has withdrawn its stand-alone guaranteed critical-illness offering, saying it will now review premiums every five years.

NU says it will continue offering guarantees on CI when it is combined with other products such as term or mortgage life insurance but that stand-alone guarantees are becoming too expensive for many consumers to afford.

IFAs say the move comes as no great surprise as most clients prefer combined life and critical-illness cover as the extra benefit generally comes at a discount.

NU has also raised premiums on its combined guaranteed mortgage term and critical illness policies by an average of 12 per cent and on its term with guaranteed CI option by an average of 1 per cent. In a bid to enhance its CI offering, the company will be offering children&#39s cover for no extra charge,providing a sum assured of £10,000 or 50 per of the sum assured per child, whichever is lower.

NU head of protection product development Lawrence Jackson says: “At review, premiums may increase or decrease depending on a number of factors, in particular, expectation of future claims, industry experience and impact of medical advances.”

Life Policies Direct partner Jason King says: “It is not a big market for that product so it is no great shakes they are withdrawing it. I am pretty certain that eventually we will see them withdrawing their combined guaranteed rate as well.”

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