Figures from the Office for National Statistics say that a third of babies born in the UK this year will live to at least 100. For girls born this year, 39% will see their hundredth birthdays while 32% of boys will blow out 100 candles on their cakes in 2112.

According to a report in the Daily Mail there are currently about 14,500 centenarians in the UK but by 2035 this will have reached 110,000. New babies born this year can expect to live well into the next century.

There has been much debate about the effect this will have on the age at which we can realistically expect to draw on our pensions. Working longer is never going to be a popular policy option, however necessary it may be, as people have become accustomed to the idea of long retirements at the end of a working life.

Research by accountants PricewaterhouseCoopers says that babies born this year will not get their state pension until the age of 77 – and their own children will have to wait until they are in their eighties.

One benefit that has, so far, been mostly overlooked, in addition to the simple fact that we are living longer, is that life insurance cover will cost less.

Life insurance premiums are based on life expectancy which is why men pay more for cover than women – but if both sexes can expect to live longer, premiums should fall for both.

However, there is probably a floor below which premiums could not fall: currently you can get around £30,000 of cover for £5 a month if you are a non-smoker in your twenties. Realistically, there is little scope for price improvement without a fall in coverage.

Potential life insurance customers should realise that price is not necessarily the best determinant of cover that is right for personal circumstances. Certainly if your family responsibilities grow you should expect to increase your life cover accordingly.

Most policies will class you as a smoker if you have consumed any nicotine within the last 12 months. This could include cigarettes, cigars, pipe tobacco, nicotine patches and chewing tobacco. Whether you smoke 20 a day, or you occasionally have a social cigarette at parties, you’ll still fall under the same classification. Insurers rarely take the actual amount you smoke into account. You are either a smoker or you aren’t.

If you have already declared yourself as a smoker to your insurance company, but you haven’t smoked for 12 months, you may be able to amend your policy. This could allow you to enjoy non-smoker rates. If you have stopped smoking and haven’t thought to notify your insurer, doing so could save you a lot of money.

You may have heard people say that if you take up smoking after buying life insurance, your premiums will never be affected. This is not strictly true, because the majority of policies require you to inform them of any changes to your circumstances that could affect your cover. If you withhold information from them, and they find out about it, they may deny your family a claim.

Knowingly lying on your application is classed as insurance fraud, which is taken very seriously. If your insurance company ever does find out, they could deny your family’s claim. This means you should consider whether lying is worth your family receiving nothing after you die. Battling with an insurance company is the last thing they will want to think about at such a distressing time.

Once upon a time it would have been impossible for someone living with HIV to get life insurance, but not anymore. About half of life insurers now offer policies to those living with the condition.

Since 2005, the insurance industry has had a statement of best practice on HIV and insurance brought in after previous practice included insurers asking about sexuality when cover was being applied for. Customers can still be asked if they have had a negative HIV test when applying for life cover but insurers will not ask questions about their sexuality.

Of course, just because these two groups can purchase life insurance does not mean that the standard rules do not apply. Do not rush into a decision based on the first purchase you see. Shop around to make sure you are getting the best possible deal and if in doubt always consult and independent financial adviser.

Whilst it is generally accepted that taking out suitable international private medical cover represents a prudent investment for expats, it appears that purchasing protection products is not considered as important.

When health insurance clients were asked by insurance provider William Russell whether they had any life or income protection insurance in place, with any insurer, 61.4% of respondents indicated that they didn’t.

Conversely, when life insurance clients were questioned about their health insurance arrangements, 70% said they had health insurance in place.

International Life insurance protection is available and can prove invaluable to families struggling to cope with bereavement. Also, with advances in medicine meaning that more people are living for longer with a serious illness or injury, the need for income protection insurance is now just as significant as the need for life insurance cover.

While many companies providing emigration services to would-be ex-pats are offering life and income protection services alongside medical cover, most people still move independently and are simply not considering the need for these products.

There is a secondary problem that, due to prominent miss-selling scandals of recent years, many people are automatically suspicious of financial services companies trying to sell them additional products to those they have asked for. While a degree of suspicion should be levelled against any salesman, in cases such as this the customer is missing out.

If you are thinking of emigrating (or if you already have) then you should endeavour to ensure that you have adequate life insurance and income protection cover that fits your personal circumstances.

You should always shop around to find the right deal and, if in doubt, consult an independent financial adviser., many of whom are specialists in retirement and/or emigration.

The research carried out by the financial services firm found that 45% of people looking for a life insurance policy do not want to pay for advice. This suggests that the financial advice industry in the UK remains an object of some suspicion with concerns about its true independence.

The Ernst & Young report, which surveyed 1,000 life and pensions customers in the UK, points to a dilemma for customers. They want to take control over the buying process, and don’t want to have to rely on someone ‘selling’ to them, and yet they feel they have to use an adviser because of the complexity of the purchase.

The news comes as changes to life insurance advice, the biggest for years, are due to come into effect at the end of this year.

As part of the Retail Distribution Review (RDR), customers will be offered a clear and concise charging system for any advice they receive. When the changes come into effect, on 31 December this year, advisors will have to explicitly disclose their fees to clients.

They will also have to separately charge clients for their services, rather than take a commission from a customer’s policy.

The Ernst & Young report found that 18% of life and pensions customers would prefer to pay for advice through charges deducted from their policy, rather than an upfront fee. Only 12% would prefer to pay for advice through an upfront or ongoing fee.

The publication of this information from a large financial services report just before the changes of the RDR are due to come into force is very interesting and probably tells us more about the industry than its consumers.

Reports such as this are bought and paid for like any other product and always show what the buyer wants them to. That a large financial services firm is trying to ‘prove’ that consumers are against the RDR is very interesting.

The industry has set against the RDR because it disadvantages companies that have been gently fleecing their customers for years. The customers themselves, however, are being empowered to get better advice for a lower price.

The simple fact is that many financial services products are too complicated for non-specialists to understand so most of us will require some advice. High quality, independent advice is worth paying for and the benefits will outweigh that upfront cost many times over.

High street giants, including Sainsbury’s and Tesco, have been accused of using “aggressive selling tactics” to get customers through the door. However, those who are lured by supermarkets’ gimmicks of loyalty points, vouchers and cashback could end up with sub-standard life policies.

Experts are urging customers to shop around for a policy to suit their needs, rather than succumbing to short-term perks. Asda is one supermarket that directs customers to a free advice and search across the market provided by LifeSearch.

However, many competitors have signed deals with big-name insurers to ‘white-label’ life products, so customers who buy cover with their Supermarket will only be getting a quote from one provider.

Speaking to the Daily Mail, one life insurance analyst said: “Supermarkets can cherry pick who they give cheaper cover to and load the premiums for people who don’t tick all the boxes. They might look cheaper to start with, but getting a competitive deal is about researching more than one company.”

There is concern that, as the cost of life insurance prices is expected to increase towards the end of the year, customers may rush into purchases and not take the time to get a policy that offers the best value. While it may be convenient to pick up a policy alongside your weekly shop, life insurance is an important purchase that should be given due consideration.

Several tax and regulatory changes taking place in the life insurance market are expected to increase prices for customers, especially women. Those hoping to beat the rise should search the market and seek specialist advice if needed.

Life Insurance is a product that can be tailored to suit the needs of the consumer and is, therefore, unlike a can of beans that can just be picked off the shelf. Before deciding on a purchase customers should be clear exactly what they want and be aware of a range of products that could meet their needs.

Over-50s plans are heavily advertised on television during the daytime schedules, usually by a minor celebrity and often incentivise enquiries with the liberal distribution of free gifts such as pens and alarm clocks.

All of this should make the canny investor suspicious, and rightly so. Taking out a life insurance plan instead of an over-50s plan could see you leaving more than 40% more to your loved ones when you die.

Even as you get older, life insurance generally remains better value. One of the major problems with over 50s plans is that if you stop making the monthly payments for any reason, you lose the full amount you have already paid in. For many older people this is a major risk.

However, one advantage of over-50s plans is that they require no medical underwriting so poor health makes no difference to your payout. Of course whole of life policies will pay out less if you are in poor health when you take them out.

You usually need to survive beyond the first two years of an over-50s policy to receive the full payout.

If you are thinking about taking out an over-50s plan, always compare it with the best life insurance policies first as you could get a better deal, particularly if you are in good health. Never let yourself be hurried into any decisions by pushy salespeople.

If you do choose to buy life insurance, always pay a fixed premium for your cover. Reviewable premiums may be cheaper at the outset, but can increase significantly in later years.

Remember that it is always better to shop around than be led into a decision. If you are unsure about the range of products available then seek independent financial advice.

Inflation may have eased to the lowest level for 15 months, but wages have failed to come up to scratch, leaving many living hand-to-mouth. Despite falls in consumer spending and even consumer borrowing, there are few signs of things getting any easier in the near future.

The only glimmer of hope for the nation’s purse strings at the moment comes from the chancellor’s recent budget. George Osborne announced that there would be an increase in the income tax threshold, meaning low earners don’t have to pay any tax until they earn over £9,205.

As the process of saving also proves particularly difficult, it could be advisable to invest in life insurance as protection from a worst case scenario. Not only could this give you peace of mind, but it could also help to safeguard your family’s financial future.

You don’t have to have a family or dependents to benefit from life insurance. In the majority of cases, life cover can be taken out from the age of 18; however each policy and provider differs. There can also be an age cap for life insurance policies too. For example, Barclay’s life insurance from Aviva will only cover those up to the age 70.

There are a large number of factors which could influence how much you contribute to your life insurance policy. This could include your age, sex, occupation, family history and even your weight. These contributing factors need to be considered to establish how high a risk you are. The higher the risk you are, the more you may have to pay towards your premiums.

For example, if you are an extreme sports enthusiast, your hobby could put your life at risk more so than someone who enjoys book clubs. Smoking and other health issues could also affect your insurance premiums. A medical examination might be required for some policies.

Life insurance doesn’t need to be as complex as many may consider it. There are a number of different types of life insurance. Decreasing term life insurance is typically suitable for people who would like to cover their mortgage costs. The premiums decrease over time so they are level term equivalents, as does the sum which is assured.

Increasing life insurance is typically designed to counteract inflation which could devalue your sum. This level of cover will increase annually and could be linked with the Retail Price Index. If you decide that you do not want to continue paying the increased fees year-on-year then your policy may change to level cover.

Level life insurance could be more suitable for those who wish to cover the risk associated with ‘interest only’ mortgages.

Another life insurance option to consider could be to take out either a joint or single policy. Joint cover could give you and your partner more flexibility, rather than having two single polices. Joint cover pays out on the first death of one of the policy holders.

If you decide that life insurance is the right option for your financial circumstances, it is always wise to seek independent financial advice. If your circumstances change then you may need to reassess your level of cover.

Analysts have suggested that insurers are being hit by a “perfect storm” of new legislation. As has been widely discussed, new European legislation due to come into force at the end of this year, will compel insurers to offer unisex rates on all types of insurance, significantly increasing the cost for women, who currently pay less because they are less likely to die early, and hence make a claim.

The opposite is true with many type of health insurance, such as critical illness cover and income protection plans. Men currently pay slightly cheaper premiums, as they are less likely to make a claim.

However, many people are unaware that new tax rules will be implemented at the same time which will push up the cost of life insurance, more than wiping out any gains men might see from cheaper unisex rates.

Currently insurance companies are allowed to offset the costs of their life insurance business, from profits made on their investments. But in the last Budget George Osborne introduced new legislation to close down this loophole. While these new rules will boost the tax take for the Treasury, it’s likely that they will push up life insurance costs for insurers, which inevitably will get passed on to consumers through higher premiums.

This change could also affect the cost of some protection policies, in particular critical illness cover. Although this “loophole” does not technically apply to health insurance contracts, many insurers sell combined life insurance and critical illness cover.

Life insurance consumers are often surprised to learn that it is cheaper to buy a critical illness policy that include an element of life insurance, rather than a simple stand-alone CI policy. This is because if the policy is sold with life insurance, the insurer has been able to make use of this loophole and mitigate these costs.

These various changes mean that those who are likely to need life insurance in the near future should not delay. This is particularly true of women – as the combination of both these legislative changes is likely to mean some very hefty price increases.

This will include those who have dependants already, who have not got this cover in place, as well as those who are planning to start a family soon. Similarly those who have this cover through their employer, but are worried about their future job prospects may want to arrange their own cover as a backup.

But even if you already have life insurance in place, it may be worth reviewing the cover. As stated above the cost of life insurance has become fallen steadily, and consistently over the last decade, and many people have found that they are able to cut the cost of cover simply by shopping around.

Customers should think about arranging cover swiftly to take advantage of lower prices, but they should still take professional advice where needed. It is important that you have an adequate level of cover for your needs, the ability to complement it in the future and at a competitive price.

Figures to back up this claim have come this week from Scottish Provident, the life insurance provider that has released detailed figures about its customers. The data shows that half of the life insurance policies it paid out on last year were held by people under the age of 56.

Close to 20% of the life claims settled by the firm in 2011 were held by policyholders aged 44 of under, while those aged between 45 and 55 accounted for another third.

The insurer, which last year paid out a total of £41,863,503 in life cover claims, suggested the figures served as a stark reminder that all adults should make sure they have their financial affairs in order at every stage of life.

There is an additional factor encouraging customers to take adequate life insurance cover this year, as in December the new EU gender directive comes into force. This will see the cost of insurance for women in particular rise considerably.

The Scottish Provident data is broadly in line with claims statistics across the industry. A separate report from the insurer LV revealed that the average age of critical illness claimants last year was 47.

There has been plenty of discussions in recent years about Britain’s ageing population, with new figures showing that almost one in four Britons will be 65 or over in 2051. However, the Scottish Provident claims figures are a stark reminder about the very real need for individuals to look after their and their families’ financial livelihood throughout their whole lives.

Tragically, in an age where there are regular calls for people to provide for their pension, there are many thousands of people who do not live to retirement age. Financial planning should take the attitude of hoping for the best but preparing for the worst.

No one likes to think of their own mortality, still less that they may die young. But accepting that there is a slim chance of this and preparing for it will ensure that your family is taken care of should the worst come to pass.

The analysis shows that premiums for all customer profiles have fallen, and there is a significant gap in price between the most competitive and most expensive policies. As with most things in life, this means that it pays to shop around and some customers are paying far more than they need to.

For example, with level term insurance policies the analysis revealed that, on average, an annual saving of £91.54 could be made, which translates to a 42 per cent price difference between the most competitive and most expensive premium.

For customers looking for a policy that includes critical illness cover, consumers could save around £213 on their annual premium, which is 31 per cent of a difference between the lowest and highest premium.

In addition, giving up smoking remains one of the most significant actions consumers can take to reduce the cost of their cover, with the typical premium for non-smokers costing 41 per cent less than for smokers.

Industry analysts have pointed out that the fact life insurance premiums continue to be competitively priced is great news for consumers. But this research clearly shows that in order to get the best level of life insurance cover for your family at a competitive price, it’s vital to shop around and compare policies on a like-for-like basis.

This will seem like stating the obvious to many people yet some customer still buy the first policy they come across without considering the alternatives. With household incomes remaining static for another year, costly mistakes such as these can have serious negative consequences.

Having critical illness cover can mean the difference between continuing to live the life you’ve carved out for you and your family, or having to make big sacrifices, for example even forfeiting the family home, should you become ill and be unable to work.

With cover becoming more competitive, now is a good time to ensure you’ve protected your family in the event of illness, or death. Customers should always shop around to see what is on offer at what price before making any decisions and, if unsure, should seek independent financial advice.