Following a "slight improvement in the market over the past few weeks". Norwich Union (NU) announced a reduction in surrender penalties for with profits policies.
Until now the Market Value Reduction or penalty for surrendering a with profits policy was 14%. This has now been reduced by 3% on average for pension policies taken out since 1988 and life policies taken out since 1989.
Our View
Norwich Union tend to lead the field with greater than average penalties, rate increases or bonus cuts. However, they are also showing themselves as fair through recent cuts in rates and penalties, due to market increases.
Whilst Norwich Union are one of the first companies to increase costs, they also seem to operate a policy of lowering them, when possible, at an early opportunity. The same cannot be said for some of the other insurers.
Search the news archive for more on NU, with profits or penalties. Learn about with profits policies in the Life Cover Adviser.com .
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