Friends First has found that six out of 10 adults do not possess life cover and is reducing its term assurance rates significantly in a bid to increase its market share. The company estimates that the mature life term assurance market is currently worth some £28 million.

"Because term assurance products are extremely price sensitive, reducing rates will help us to strategically position ourselves to capture a sizeable proportion of this market, said Mr John Cunningham, head of planning and marketing at the company.

It has announced average rate reductions of 18 per cent on its mortgage protection policies, 19 per cent reductions in its most basic level term product and a 25 per cent reduction in both convertible term assurance and in self-employed term assurance.