Regional disparities in the UK life insurance market have reduced over the past year, data suggests.
Comparethemarket’s quarterly Life Snapshot shows the North-South divide in premiums has narrowed significantly, with people paying £17.05 and £22.40 per month respectively in the North East and London. Last year the gap was far wider at £11.98 and £28.42.
“The capital’s city-dwellers can now expect to pay around £22 a month for their life insurance policy – significantly less than in June 2018,” said Kamran Altaf, head of life insurance at Comparethemarket.
Life insurance is linked to house prices, which tend to be higher in London and the South.
Altaf said that with the average London house price still standing at almost £500,000, as opposed to £128,000 in the North East, the data suggests life insurance is becoming more affordable for those living in the capital.
The data from the comparison site also shows nearly one third (32%) of policyholders take out insurance during the “mature independent” life stage, once children have flown the nest, and pay almost £25 a month.
A fifth take out life insurance when they are “young independent” and pay almost £10 less a month for their policy at just over £16 a month. Level term makes up 69% of life cover purchases, with mortgage protection comprising the remaining 31%. The average monthly premium for both is just over £21.