It has been revealed that life insurance sales have increased, bringing good news to insurers during the recession.

Despite the financial downturn, sales of new term life, trauma and income cover were up 35% in the year to the end of June, compared to the same time period two years ago.

Russell Hutchinson from a consumer group, which monitors commissions, said: “Market growth would have been 2-3% a year, but over the last couple of years it has been more like 8% or 9% depending on how you count it.”

One insurer noted that a prime reason as to why sales were up is because during a recession, people are more cautious about their lives and their health.

Vance Arkinstall, chief executive of the Investment Savings and Insurance Association commented: “In times like these, people are more aware of personal risks and are looking at whether they have enough insurance,” he said.