Cost of life insurance shown to have decreased in real terms

Whichever way you look at life, life insurance is inevitably something we all need to think about purchasing. Whether you're young or old, life insurance is important because while you might not be expecting to die anytime soon, life is unpredictable; and if you have dependents, you need to make sure they will be provided for in some way in the event of your death.

Hitherto, many people attribute their lack of life insurance to high cost. However, new research appears to suggest that the cost of life insurance premiums has decreased substantially over the past ten years. According to a study done by Barclays Life Insurance, living costs in the UK in the past decade have risen by 16%, but the price of average life insurance premiums has halved during the same period.

Mark Till, managing director of Barclays Insurance observed: "we all seem to remember our money going a lot further in the past than it does these days". The main contributors to the higher cost of living in the UK include rising property prices, as well as increases in the price of petrol and tobacco; higher taxes and rising energy costs have also played a large part in pushing prices up.

This evidence of the steadily decreasing price of life insurance surely indicates that, if you're planning to buy life insurance but haven't yet been able to do so, now is the time. In fact, more and more people seem to be taking advantage of the decreasing price of life insurance; in early November, insurance company AXA SA stated that its nine-month revenue had risen by 11.6% from a year ago, due to the strong sales performance of its life insurance and savings business.

If you are thinking of buying life insurance, it's always best to study the market and compare the different life insurance policies available so you can find the best policy to suit your own personal requirements. For instance, many people buy term or "protection-only" insurance, which pays out if you die within a specified amount of time; this is much cheaper in the short term, particularly if you have received news of a sudden illness. However, in the long term, it is always better to choose investment-type life insurance; this builds up in investment value throughout your life, which you can even cash in on before you die. This way, the earlier you buy investment-type life insurance, the greater the accumulation of value during your lifetime, and the better the provision for your dependents!

About the author:
Andrew Regan is a keen sportsman playing rugby during the winter and cricket during the summer.