Norwich Union has re-priced a number of its protection products across its Mortgage Life Insurance (MLI) and Term Assurance ranges.
It says the move could help those feeling the effects of the credit crunch and ease the financial burden for the average house buyer.
It says the reprice has focused particularly on providing affordable cover for sums assured of £175,000 and above, pointing out the average house price now stands at £183,959.
Norwich Union says those purchasing policies with critical illness (CI) cover will benefit in particular. Decreasing term insurance with CI cover has been cut by an average of 3%, while level term with CI cover has seen an average cut in rates of around 2%.
In addition, the reprice will include MLI and term assurance policies lasting longer than the traditional 25 year lending term.
Darren Dicks, head of protection marketing for Norwich Union, says: “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.
“There is still a huge demand for people to get on and move up the housing ladder with around a quarter of a million mortgages taken out in the last quarter alone.
“The credit crunch has meant that money is tighter for a lot of mortgage holders, so we are delighted if we can help people to save in other areas.”
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