Scottish Equitable Protect has cut rates on its mortgage protection products by up to 30 per cent in a radical overhaul of its menu.
Taking effect from last week, premiums on level life, critical-illness cover and life insurance with critical-illness cover are down by up to 30 per cent, with decreasing life, CI and life with CI cover linked to a mortgage down by around 20 per cent.
The company says the overhaul is part of making it more competitive, with the age definition on the mortgage protection menu also moving to an “age next quarter birthday” assessment. The change brings it in line with its personal protection menu.
Premier Mortgage Management managing director Mark Mountney says: “This will certainly make them more competitive. Clearly, something like that is very powerful indeed. The biggest question is whether we are going to see an acceleration of problems with administrative processing delays.”
Scottish Equitable Protect head of marketing Laura Shanks says: “Tak-ing out a mortgage is the biggest single driver behind sales of critical-illness insurance and other protection products so we wanted to ensure that our mortgage protection menu was competitively positioned in the market.”