One of the UK's largest insurers, Norwich Union has announced increases to the costs of life insurance. Liverpool Victoria, another insurer has also made the same announcement.
Norwich Union's level cover rates will rise by just over 1% but their mortgage cover rates will rise by around 5%. Liverpool Victoria's level rates will rise by around 14% for smokers and 3% for non-smokers.
Norwich Union sited the changes in costs of reinsurance last year as the reason for their rise.
Our View
Firstly, if you have applications already with these two providers, it will not have a forced increase imposed. As life expectancy rises, you would expect the price of insurance to fall.
However, this is only the case when all other things are equal, such as the same amount of claims and the same costs of reinsurance.
If providers are suffering heavier than normal claims and an increase in the cost of reinsurance, costs will rise. Get a quote for cover now.