Brokers urged to inform clients about illness cover

Brokers advising homebuyers have been urged to inform clients about critical illness protection, with guaranteed rates potentially being phased out, writes Ben Stafford.

Norwich Union increased their guaranteed rates by 50% in December and other companies may well follow suit. Pundits say such moves reflect re-insurers&#39 concerns that improvements in medical techniques will lead to a rise in the number of claims passed to life offices.

Lee Davy, director at Cheshire-based life broker Rebroke, says: “Brokers should be looking to make sure quotes are based on guaranteed rates and that they don&#39t let quotes expire. Providers such as Norwich Union won&#39t necessarily give a warning about withdrawals or rate changes in the future.”