Zurich has increased the maximum term for its critical illness cover from 30 to 40 years, enabling more advisers to offer customers cover to match the length of their mortgages.
The extension follows an increasing trend of people taking out mortgages over longer periods to make their monthly repayments more affordable as house prices continue to rise.
Data from the Financial Conduct Authority recently showed that in the past five years, the average mortgage term has increased from 25.8 years to 27.2 this year.
Furthermore, recent data from the Council of Mortgage Lenders revealed a record number of people took out 30-year mortgages in the second quarter of 2014.
During the period 19,300, or 20 per cent of house purchase loans, had a term over 30 years, compared to 27,000, or 18 per cent, in the previous quarter, according to CML.
Zurich stated that the Mortgage Market Review 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, said: “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.”
