Life Assurance Rate
The factors which affect the rate you pay, and some sample best buys.
The life assurance rate you pay will depend largely on your age, health, the length of the term of the policy and in some cases your occupation. Smokers and men get the raw end of the deal; women fare much better. That said, term assurance rates are at their lowest for many years.
There’s no such thing as the “right” life assurance rate to pay- rates change constantly due to several reasons. Some affect the whole market; for example the average life assurance rate plummeted in the early 1990’s, when it turned out that AIDS was not going to be the epidemic that life offices expected. Equally individual companies can force market movements- the arrival of supermarket financial services pushed rates down and there are always companies pushing special offers out into the market to grab market share. The secret to getting a good life assurance rate will always be shopping around.
As at February 2004, here is a sample of level term assurance best buy rates (expressed as monthly premiums)- you can check current deals online or in any national newspaper, usually at the weekends.
COVER(10 years) MALE SMOKER FEMALE NON-SMOKER
Age 30 Age 50 Age 30 Age 50
50,000 6.23 27.40 5.34 11.00
100,000 9.97 52.80 6.28 19.30
250,000 21.17 124.00 11.50 43.75
As you can see, age very significantly affects the life assurance rate you pay- after all a ten year policy at age 50 will only expire at age 60, and the chances of your dying before 60 are a good deal higher than those of your death before the age of 40. Quite simply, it will also help if you can give up smoking! These rates are obviously subject to constant variation; but at least offer a ballpark idea of premiums.