Life assurance premiums fall 50% in a decade

by Gill Montia

Story link: Life assurance premiums fall 50% in a decade

Financial website, Moneyfacts.co.uk, has published research showing that in the past decade the cost of term life assurance has roughly halved.

For non-smokers, keen competition has reduced the average male premium by 53% since July 1998, representing a saving of £3,018 over a 25-year term.

The average female non-smoker premium has fallen 48% in ten years, reducing the premium on the average 25-year term by £2,232.

Smokers have also seen improvements. The average male smoker premium costs 48% less, saving £3,780 on a 25-year term and the average female premium is down 45% representing a saving of £2,724.

According to Moneyfacts, premiums have risen slightly over the past 12 months and surprisingly, non smokers are at the forefront of rises.

Nonetheless, rates for non-smokers are still around 35% below those for smokers.

Moneyfacts investment, life and pensions editor, Richard Eagling, explains that longer life expectancy and increased competition in the term assurance market have driven prices down.

The number of providers has increased substantially in the past decade and Mr Eagling warns consumers to shop around carefully as life assurance companies assess risk differently.

As a result, cover with one assurer can cost five times more than with its most competitive rival.