View more on these topics

Permanent&#39s critical mortgage

Tuesday, 27th March 2001.


Critical Illness Mortgage

Type: Critical illness cover.

Minimum premium: £10 per month.

Maximum cover: No maximum.

Illnesses covered: Cancer, heart attack, stroke, major organ transplant, multiple sclerosis, kidney failure, coronary artery bypass, Alzheimers, angioplasty, aorta graft surgery, benign brain tumour, blindness, coma, Creutzfeld-Jakob disease, heart valve replacement or repair, HIV — blood transfusion, HIV — needlestick injury, loss of independent existence, loss of limbs, loss of speech, meningitis, motor neurone disease, paralysis/paraplegia, Parkinson’s disease, rheumatoid arthritis, terminal illness, third degree burns, permanent total disability before age 65.

Minimum-maximum ages: 18-65 for term assurance, 70 for whole of life.

Charges: None.

Options: Increase in cover without further underwriting.

Commission: Initial — whole of life 31.25 per cent of premium, term assurance 43.75 per cent, renewal 2.5 per cent.

Tel: 0800 0286222.

Broker Panel:-

Roy Rutter – Principal, Aptitude Financial Planning

Peter Overy – Principal, Overy & Booth

Gordon Upsall – Partner, Standard Securities

Kevin Morre – Consultant, Pier Financial

Broker Ratings:-

Company&#39s reputation: 8.2

Premium rates: 6.4

Range of illnesses: 8.4

Flexibility: 8.0

Charges: 7.3

Commission: 6.5

Product literature: 7.9

Permanent Insurance has unveiled its&#39 Critical Illness Mortgage product, providing cover for a wide range of conditions.

Considering how well the plan fits into the market, the panel is largely in agreement.

Overy says: “Provided premiums are competitive, then it should fit very well. For clients who would prefer the opportunity of a small return at the end of the term, this would be an ideal mortgage protection plan – provided investment returns are reasonable.”

Moore says: “As critical illness becomes more popular, so the Permanent product will increasingly fit into the market place. Cost has always been a factor in critical illness, and provided that the premiums are affordable, the plan should have a good take-up rate.”

Rutter adds: “There are plenty of players in this market, but still scope for this plan which has one or two particular features.”

Upsall simply feels that the plan will compliment mortgage sales.

Turning to the type of client the plan is suitable for, Rutter lists: “Those reviewing their life cover, moving house or just remortgaging. Younger clients who may have life cover only without critical illness. Switchers from endowment to repayment.”

Upsall says: “Ideal for most clients, but particularly younger lives taking out their first loan.”

Overy feels that it will be useful for any client involved in house purchase or remortgage scenarios.

Moore quantifies his response: “Very dependent on individual circumstances. Single homebuyers are very suitable for this product as they are less concerned with death cover protection for their mortgage.”

There is a difference of opinion when the panel looks at the type of marketing opportunities provided by the product.

Upsall does not think it will provide any opportunities for his particular firm, while Overy says: “Many clients are turning to repayment mortgages due to the bad press for endowments – this plan would suit those clients.”

Moore has a similar feeling: “Many opportunities exist for existing homeowners who now wish to include critical illness for their repayment mortgages. The increase in the number of product providers will undoubtedly create competition, drive down the rates and open the market to more clients.”

Rutter thinks marketing opportunities will be: “Mainly through annual client reviews or linked to a remortgage. However, I am not an enthusiast of unit-linking for protection products.”


Product Matters

Norwich Union Investment Funds&#39 recent launch of sustainable future funds was not altogether unexpected.Last year, Morley Fund Management, the fund arm of NU, acquired the Henderson/ NPI socially responsible investment team led by Clare Brook.Brook and her team have an enviable track record and have dem-onstrated that socially responsible investment can be very profitable.What has […]

Widows criticised over mailshot to IFA clients

Scottish Widows has apologised to IFAs after the latest in a series of admin bungles which saw IFA clients sent a mailshot inviting them to contact a Lloyds TSB consultant.Widows admits it accidentally issued nearly 1,000 IFA clients with a mailshot aimed at encouraging Lloyds TSB clients to increase their pension contributions.The mailshot advises clients […]

Equitable probes negligence claims over annuities defeat

Equitable Life says it is prepared to take the FSA, the DTI, its directors and advisers to court if it finds evidence of negligence in its House of Lords defeat over guaranteed annuities.Policyholders and action groups have told Equitable they have evidence of wrongdoing. Equitable says it will consider the evidence and take action against […]

Govt Actuary in warning on compulsory income cover due to stakeholder effects

The Government Actuary says income protection insurance may need to be compulsory as a result of stakeholder.Speaking at a Unum-sponsored symposium on disability in London last week, Gov- ernment Actuary Chris Day-kin claimed many employers will no longer provide staff with protection for long-term illness or disability, leaving the Government to fill the gap with […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]


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 advice.

    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