Cost of life cover halved over last decade

Research from Moneyfacts.co.uk revealed that non-smokers have been the biggest beneficiaries of the price war, with the average male premium down by 53 per cent since July 1998.

Similarly, the average female non-smoker premium has dropped 48 per cent over the same period.

In monetary terms, this represents a £3,018 saving over a 25-year term for a male and £2,232 for a female.

Smokers have also seen premiums reduce, with the average male smoker rate now 48 per cent lower (a cost saving of £3,780) and the average female rate down 45 per cent (a cost saving of £2,724) over the same period.

But Moneyfacts warned that prices may have bottomed out, especially for non-smokers, as premiums have increased slightly over the past 12 months.

For a male non-smoker aged 30 next birthday the average monthly premium for £100,000 of level term assurance has risen from £8.71 to £8.79. For a female the monthly cost has increased from £7.34 to £7.87.

By comparison, smoker rates have continued to decrease, falling by an average 2.2 per cent for males and 1.6 per cent for females over the past 12 months.

However, Moneyfacts added that rates for non-smokers are still around 35 per cent cheaper.

Richard Eagling, editor of investment, life and pensions for Moneyfacts, said: "Longer life expectancy coupled with increased competition in the term assurance market has driven prices down to all time lows, but for non-smokers there are signs that rates may have bottomed out.

"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?"