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Term rates slashed in Colonial&#39s push to IFAs

Colonial Mutual is planning a major push into the IFA market by slashing rates on its term insurance products and launching them to IFAs.

The products to be sold through IFAs are level term insurance, premium and sum assured guaranteed, decreasing term insurance and pension term insurance.

Product marketing manager Roy Chappell says prices have been cut by an average of 28 per cent for men and 22 per cent for women aged between 25 and 40.

On a level term insurance plan with a sum assured of £100,000 for a non-smoking man aged 30 next birthday, premiums have been cut from £16.60 to £13.70 a month.

A woman with similar policy details will see premiums cut to £10.30 from £11.60.

IFAs will receive 140 per cent of Lautro rates standard commission.

Colonial, which has a direct salesforce of 500, launched to IFAs in August with a with-profits bond.

The company has shunned the traditional network of broker consultants and sales representatives, setting up a central phone-based service instead.

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