A survey by Norwich Union has revealed that apathy is leaving 20 million UK adults at financial risk because they don't have any form of life or income-related protection.

Figures from Norwich Union Life Insurance show that of those without any life cover...

• more than 37% say this is because it's still on their ?to do' list or that they haven't thought about it
• one in seven (15%) say they have made other provisions
• one in ten (10%) haven't bothered because they have no dependents and feel no need for a life insurance policy
• 9% say they don't have it because they don't have a mortgage to insure
• 3% of people say they haven't taken out a policy because they don't understand it.

Head of protection marketing at Norwich Union, Darren Dicks commented... "These findings are cause for concern as they suggest many people are taking an ?it won't happen to me' approach to protection. Around 52% of UK adults have no life cover at all* and the remainder are either underinsured or unsure about what type of cover they hold.

"There is currently a £2.3 trillion protection gap in the UK which leaves a large proportion of the population vulnerable. Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait."

Norwich Union's research also reveals a number of key 'trigger' events which motivate people to purchase life insurance cover. These events include:

• Buying first home: 44%
• Moving home: 18%
• Divorce/separation: 14%
• Getting married or moving in with partner: 13%

* Source: Swiss Re

Labels: life insurance, Norwich Union

Norwich Union has announced a series of rate reductions on its Mortgage Life Insurance (MLI) and Term Assurance policies.

The reprice is designed to make the cost of Norwich Union life insurance more affordable in the light of the recent credit crunch and ease the financial burden for the average home buyer. The reductions are focused on providing affordable cover for sums assured of £175,000 and above as the average house price now stands at £183,959 according to the Nationwide Building Society.

Customers buying cover with critical illness insurance included will also benefit as decreasing and level term insurance with CI cover has been cut by an average of 3% and 2% respectively.

In addition, the reprice will also include mortgage life insurance and term assurance policies with term's beyond the traditional 25 year mortgage term. This follows changes in market demand as more and more borrowers require policies to cover mortgages of 30 or 40 years.

Head of protection marketing for Norwich Union, Darren Dicks, said... "We constantly review all of our protection products to make them as competitive as we can to the widest possible audience. This latest reprice brings welcome news to the UK's 12 million mortgage holders, at a time when many people are feeling the pinch."

Labels: life insurance, Norwich Union

The Post Office today announced the launch of a new product into the life insurance market, and is offering a £100 cash back bonus to anyone taking out a policy. A minimum premium of £10 per month is required to qualify for the £100 cash back offer which is redeemable after the 12th monthly premium is paid.

Post Office Life Insurance has the flexibility for customers to choose Level Term cover which pays out a fixed lump sum to the deceased's dependents in the event of their death or Decreasing Term which is suitable for those with a repayment mortgage as the sum assured decreases in line with the outstanding mortgage.

Both products offer up to £500,000 worth of life cover and people can get cover from as little as £5 a month and choose the amount and length of cover they require.

The new life insurance will join the Post Office's recently launched Over 50s Life Cover to create a suite of life products, offering affordable and comprehensive peace of mind to customers wanting to protect their loved ones and their home.

In line with the Post Office's other financial policies, the new life insurance product is easy to understand and simple to apply for.

The Post Office will be able to accept more life insurance applicants on standard terms by using an interactive application process, which will see fewer applications referred to its underwriters for a decision on health issues.

Post Office director of insurance Phil Ashkuri said: "In line with our other financial services products, our new life insurance launch offers simplified insurance that fits our customers needs. We know that people buy life insurance at key stages in their lives, such as buying a home, getting married or having a child, which is why we want to make the process easy to understand and convenient. Also, with the £100 bonus offer available when taking out a policy, along with competitively priced premiums, this gives people a great deal."

The Post Office has announced it's entry into the life insurance market with a new Over 50s Life Cover policy.

Available now, the over 50s plan is provided by Norwich Union and extends the Post Office's current range of insurance products with the aim of offering affordable cover to people who want to avoid leaving funeral costs or debts to their family.

Like many other over 50 plans, acceptance is guaranteed for all applicants with only three questions required to receive a quote. Unlike traditional life insurance, ther are no medical questions or checks needed.

Customers can choose how much cover they want with premiums starting at just £7 a month up to a maximum of £50. Post Office life insurance offers higher levels of cover than some of the current market leaders and will pay out the full sum assured after just 12 months.

Any self respecting over 50s plan wouldn't be complete without a free gift and the Post Office plan is no different with a choice of a Freeview box, digital camera or box of wine after the third monthly payment has been received.

Director of insurance at the Post Office, Phil Ashkuri said... "This is the first of a suite of products the Post Office is launching into the life insurance market. Our Over 50s cover is easy to understand and apply for, with guaranteed acceptance. We also offer our customers more comprehensive cover than some of the leading plans on the market by paying out the full sum assured after just 12 months."

To apply customers simply need to visit any Post Office branch, call 0800 096 5597 or visit the Post Office life cover website.

Legal and General has won the 'Life Insurer of the Year Award' for the eighth time in ten years at the British Insurance Awards.

The awards which began in 1994 are designed to showcase top class performance, innovation and to reward achievement in raising standards. The presentation dinner is held annually at the Royal Albert Hall and is one of the biggest events in the insurance industry's calendar.

Accepting the award for Legal and General, Gary Burchett said, "To win this title again is a great honour, especially given our track record in this category. We continue to strive for excellence and this award is a reflection of all the hard work that our people have put in to creating better service, better systems and better products."

"The life insurance industry continues to be very competitive and we certainly cannot rest on our laurels. Our strengths lie in offering value for money life insurance products through a broad range of distributors, backed by a commitment to excellent customer service."

Legal and General life insurance has won Life Insurer of the Year eight times in the last ten years, in 1998, 2000, 2001, 2002, 2003, 2004, 2005 and 2007.

As obesity in the UK continues to rise, Norwich Union life insurance is highlighting the financial impact of the growing epidemic.

The UK's largest insurer advises that piling on the pounds is likely to be reflected in higher life insurance cover premiums, with a clinically obese person facing payments of nearly twice as much as a person of normal weight for exactly the same cover. As an example, when buying life cover of £200,000 for a 15 year term, an average 35 year old, 5'10" non-smoking male weighing 12 stones can expect to pay far less than the equivalent heavier applicant.

In fact, a non-smoking male of the same age and height but weighing 18 stones can expect to see an increase in their premium of nearly 30%. And if this heavier male was to put on further weight up to 20 stones, their life insurance costs could increase by around 75%.

The effects are much the same for women too. For example, a 35 year old, 5'5" non-smoking female weighing 15 stones would pay a premium 25% higher than a nine stone counterpart. This premium hike jumps to 70% when comparing the same female applicant at 17 stones in weight.

Chief underwriter at Norwich Union life insurance, Tony Jupp, says: "Obesity dramatically increases the likelihood of a range of chronic medical conditions including heart disease, high blood pressure and diabetes. It can also put a huge strain on weight bearing joints especially the hips and knees, leading to a number of mobility problems. In addition, many overweight people are very sensitive about their weight and these concerns can often lead to periods of anxiety and even depression. The cost of life insurance cover has to reflect these additional risks."

With No Smoking Day on March 14 and the smoking ban coming into force this summer, those who are thinking of quiting could also save up to £4,000 on their life insurance premiums.

According to price comparison website, www.moneysupermarket.com, smokers who stub out their last cigarette before NSD will benefit not only their health but their wallets too, with life insurance premiums for non-smokers at half the cost than for their smoking counterparts.

For example, a 35-year-old man wanting life insurance cover for £100,000 over 25 years would pay £19.15 a month with Legal & General if he was a smoker. If he is a non-smoker, he would only pay £8.50 a month ? a saving of 56 per cent or £2,550 over the term. Based on the top five table below, a smoker with Scottish Provident could save over £4,000 over the term.

Emma Walker, head of life insurance at www.moneysupermarket.com said: "In order to be classed as a 'non-smoker' and qualify for life insurance premium savings, insurers insist on smokers having kicked the habit for a full year. The difference in premiums between a smoker and a non-smoker is vast and there are significant additional savings to be made simply by shopping around for the cheapest deal to suit your circumstances."

From July 1, 2007, smoking will be banned in all enclosed public places in England such as offices, factories, pubs and restaurants, making it likely more smokers than usual will take this year?s No Smoking Day as a prompt to kick the habit. With www.moneysupermarket.com?s term assurance service on its website, customers can easily and quickly compare the available life insurance policies and see the best deals in moments.

Emma Walker said: "More than 2.8 million people are expected to give up smoking because of the new law*, so if you?re keen to give up this year, you should find plenty of support from others in the same position. While smokers often benefit from a higher income from pension pay-outs in retirement due to lower life expectancies, most people value the health and lifestyle benefits of quitting early, and half price life insurance could simply be the icing on the cake."