Bright Grey, the protection specialist arm of the Royal London group, is to extend the maximum term of its Critical Illness Cover and its Life assurance and Critical Illness Cover. The move is in response to demand from customers taking out mortgages over longer terms than in the recent past. The changes will take place by November 2006.
- Critical Illness Insurance Cover: term increases from a maximum of 25 years to a maximum of 40 years
- Life assurance and Critical Illness Insurance Cover (reviewable rates): term increases from a maximum of 25 years to a maximum of 40 years
- Life assurance and Critical Illness Insurance Cover (guaranteed rates): term increases from a maximum of 25 years to a maximum of 30 years
Commenting, Andy Peters, Distribution Director, says: “We’re extending the term of our cover to meet a growing demand. Property prices in the UK have continued to rise and in some areas of the country average house prices are up to 8 times greater than average salaries. The traditional 20 – 25 year term is simply no longer affordable for many people and mortgage lenders are increasingly offering longer term mortgages to help people get into the property market and own their own home. Recent research carried out for us shows that over 40% of people who bought their first property in the last 12 months have taken out a mortgage for a term of more than 25 years and a third have used up all of their savings buying their property.“
The demand for longer-term protection plans has been increasing, as more and more people are taking on longer-term mortgage debt. Traditionally it's been life cover that's been available over the longer term. But for many people, critical illness insurance cover is just as important as life cover, if not more so for those who have no dependants, which is the case for many first time buyers.
Bright Grey’s Critical Illness Cover and Life assurance and Critical Illness Cover are part of its Menu Protection plan. They can be taken out on a stand-alone basis, or in conjunction with other elements of the plan, which also includes Life Cover and Income Protection for Sickness.
Critical Illness Cover includes:
- Children’s Critical Illness Cover
- 30 critical illnesses covered
- Mortgage Guarantee Option
- Joint Life Separation Option
- Joint Life Reinstatement Option
- Term of cover - 5 – 40 years
- Maximum amount of cover £500,000
- Can paid as a lump sum
- Can be taken out on an increasing, decreasing or level basis
- Can be paid as an income (family income benefit)
- Helping Hand – legal, medical and personal helplines
- Red ARC nurse