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Life cover price war good news for consumers

Life cover price war good news for consumers

Category: Life insurance

Updated: 14/12/2016
First Published: 28/05/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumers have been the beneficiaries of a price war in the life insurance market, according to research from Investment Life & Pensions Moneyfacts. Whilst the cost of other forms of protection such as motor and household insurance has been on the rise, average term assurance premiums have been in sharp decline. Non-smokers have been the biggest winners with the average premium for a female aged 30 next birthday wanting £100,000 of level term assurance falling by more than 13% over the last 12 months from £7.89 to £6.82.

For a male non-smoker, the average monthly cost has dropped to £7.82, down from £8.82 a year earlier, a fall of just over 11%.

Meanwhile, smokers have benefited from cheaper cover too, with the average female smoker rate falling more than 9% to £9.84, down from £10.84. The average male rate has also dropped from £13.39 to £12.65, a decline of more than 5%.

"Longer life expectancy coupled with increased competition in the term assurance market has driven prices down to all time lows," said Richard Eagling, editor of Investment Life & Pensions Moneyfacts.

"Consumers looking to take advantage of the huge savings on offer should proceed with caution as life insurance companies assess risk differently. Some policies are as much as five times more expensive - so why waste money needlessly?"

At present, AA Insurance Services leads the way in three out of the four Moneyfacts level term assurance best buy tables.

To find out the leading deals on offer, follow the links below.

Moneyfacts.co.uk have partnered with Torquil Clark Life Insurance to help you find the best life insurance deal.

Speak to an adviser about your life insurance needs

Under no circumstances should you cancel an existing life insurance policy until a new one has been arranged. Torquil Clark Life Insurance is a trading name of LifePolicies Direct Ltd which is authorised and regulated by the Financial Services Authority.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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