“Over the past year, we have seen some long term trends start to reverse in the life insurance market. It is most encouraging to see a decrease in regional disparities across the life insurance market. The North – South divide has reduced significantly, paying £17.05 and £22.40 per month respectively in the North East and London. Last year the gap was far wider at £11.98 and £28.42. The capital’s city-dwellers can now expect to pay around £22 a month for their life insurance policy – significantly less than in June 2018.
“It is unsurprising that the market has such strong regional disparities, as life insurance is inextricably linked to house prices which tend to be higher in London and the South. However, with the average London house price still standing at almost £500,000 – as opposed to £128,000 in the North East – the data suggests that life insurance is becoming more affordable for those living in the Capital.
“The price of life insurance increases with the age of the policy holder – meaning that it is in consumers’ best interests to take out a policy earlier in life so they are able to reap the benefits of a cheaper premium. Nearly one third (32 %) of policy holders take out insurance during the ‘Mature Independent’ life stage, once children have flown the nest, and pay almost £25 a month. Whereas those who have chosen to take out life insurance when younger individuals pay almost £10 less a month for their policy – meaning that significant annual savings can be made simply by taking out a policy sooner.
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