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The Actuary The magazine of the Institute & Faculty of Actuaries

Life cover bucks price trend

Research by the website Moneyfacts has found that life assurance premiums have fallen by as much as 50% on average over the past decade. This is in stark contrast to rises in the costs of other insurance products such as motor and household cover in the same period.

The biggest beneficiaries are non-smokers, whose rates have fallen by 53% since July 1998, with females’ rates seeing a 48% decline. Smokers have also benefitted, with the average male rate falling by 48% and the female rate falling by 45% over the same period.

In the past 12 months, however, Moneyfacts has noticed a slight reversal of this trend, with rates for non-smokers growing by 1.5% to 2.5% on average. Richard Eagling, Moneyfacts’ editor for life, investments and pensions, says that the figures suggest that effects of increased competition have bottomed out. However, he also commented that considerable variation in rates across providers could be seen, with quotes being as much as five times more in some cases.

Further information can be found on www.moneyfacts.co.uk