Average life insurance policy ‘nearly £100 cheaper than 10 years ago’

The cost of a life insurance policy is nearly £100 per year cheaper on average than it was 10 years ago, according to analysis.

The average monthly cost a decade ago was £33.75, adding up to £405 per year, website CompareCover.com said.

The average cost now is £25.79 per month or £309.48 annually – a difference of £95.52.

Compare Cover looked at the average level of cover, premium cost and term offered by providers through the website between 2008 and 2018.

It found that the average life policy in 2008 offered £158,421 of cover for 21 years, but now £171,208 of cover is typically available over a 23-year period.

Mike Preston, business development director at Compare Cover, said: “When taking out life insurance, it’s important that you regularly review your outstanding mortgage, debts and liabilities and what you contribute financially to the household to ensure you are properly and adequately covered should the worst happen.

“It makes financial sense for anyone currently in possession of a life insurance policy to check what cover their existing policy provides, calculate what cover they need now and for how long.”

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