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Cost of life insurance falling
18 December 2007 11:00
The relative popularity of life insurance in Britain owes much to the comparative strength of the sector, according to one financial advisory firm.
Statistics from Prudential indicated that, with £105 billion net premiums written, the UK's life assurance market was the biggest in Europe in 2004 and the largest in the world, with a high rate of penetration and a strong assortment of products on offer.
A spokesperson for Libra financial planning explained that this is because the British life insurance market is so competitive, although there is considerable divergence in premiums and there are also certain add-ons that policyholders can opt for.
He said that the falling cost of cover is partly an outcome of medical improvements, as the life expectancy of the population as a whole climbs upwards and in the opinion of insurers, the risk of death therefore declines.
The Government Actuary Department has predicted that the average man and women will live to 81 and 85 respectively by 2031, while the proportion of the population aged over 60 will rise to 30 per cent.
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