4th September 2014
Insurer Zurich has increased the maximum term for its critical illness cover from 30 to 40 years to take account of customers with longer mortgages and better reflect changing retirement patterns.
The firm says this extension follows the increasing trend of people taking out mortgages over longer periods to help make their monthly repayments more affordable as house prices continue to rise.
It says that data from the Financial Conduct Authority shows that in the past five years, the average mortgage term has increased from 25.8 years to 27.2 this year.
The firm says the recent introduction of the Mortgage Market Review, which focuses on affordability, has further accelerated this trend, by allowing people to spread payments over a longer term as household finances remain stretched.
Peter Hamilton, head of retail propositions, says: “We have listened to advisers and customers, and we are pleased to be able to offer them extended protection, without them having to worry about rising premiums or whether or not they will be able to secure cover in later years. It is important for us to be able to respond to a constantly shifting market by offering simple and straightforward solutions.”