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Zurich cuts 25% off dread cover

Zurich Financial Services claims it is aiming to undercut market rates by as much as 25 per cent with the launch of its new critical-illness term insurance product.

Claiming to offer the most competitive first-year rates on the market, ZFS&#39s High Cover protection range incorporates critical-illness cover on a term basis and optional life cover, with premiums reviewed on an annual basis.

According to ZFS, first-year premiums on a 25-year term standalone CI policy for a non-smoking 30-year-old male would be £12.10 compared with £17.26 from Swiss Life and £20.10 from Legal & General.

At the same time, the provider is launching a Mortgage and Family Protector product which it says offers consumers a way to take the first steps on the protection ladder or top up existing coverage.

The product combines CI, life insurance and income protection. Cover for the first two is level, with income protection available at an additional premium and based on 1 per cent of that cover per month. This would mean if an individual had a £100,000 CI and life policy, IP cover would then be £1,000 a month.

ZFS says many people cannot afford all three types of cover although the need may exist, so the new product allows them to get some of each type of cover.

Both products are being added to the provider&#39s range rather than replacing existing products.

ZFS protection solutions director Peter Kelly says: “In the past, customers have had to prioritise between life cover, critical-illness cover and income protection and have usually ended up gambling upon which event will happen first. With the Mortgage and Family Protector we can offer cover for all three needs, with equal importance, at a price the customer can afford.”

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