Boost family's protection at no extra cost
Research by Sainsbury's Life Insurance has revealed that the monthly average market life insurance premium has decreased for three quarters (74)% of customer profiles over the last 12 months. The supermarket bank is urging people to shop around for their life insurance and if they already have a policy, to review their premiums to make sure they have the best cover at a competitive price.
The findings suggest that by switching life insurance provider, people may be able to pay less for the same level of cover or improve their cover for around the same premium. Furthermore, it may be possible to retain a similar premium and level of cover but receive a reward simply for switching to a new provider.
The cost of cover can vary dramatically between providers, making it all the more important to shop around for life insurance. For example, the percentage difference between the average premium of the 25% most competitive providers and the 25% most expensive was as much as 59% or £6.27 a month. Meanwhile, the average premium for the most competitive providers was 21% less than the market average, or £2.84 cheaper a month.
The fall over the past year follows a continuing trend of declining premiums, with research from Sainsbury's Life Insurance in March 2007 revealing that monthly premiums amongst the same 38 profiles reviewed at that time had already fallen from an average of £16.11 to £15.87 (1.5%) in the space of just six months. Between September 2006 and December 2010 there has been a 16% drop in average monthly premiums.
Lucy Hunter, Sainsbury's Life Insurance Manager, said: "Over recent years we have seen the term assurance marketplace become increasingly competitive. However, the gap between the most competitive and most expensive premiums still remains significant and we believe the disparity between premiums revealed by our research should serve as a poignant reminder to people of the need to shop around.
"Life insurance is one of the most important financial products you can buy if you have dependants so it is crucial that you invest time to find the right cover for you and your family at a competitive price. A difference of £6.27 a month over 25 years amounts to £1,881, which is a significant amount of money that could have been used differently."
Lucy added: "People should ideally review their premiums regularly like they might their motor or home insurance, particularly if they've moved home or remortgaged. Those with cover designed to help replace an income on a partner's death should review their policies regularly, as their income and the family's outgoings may have increased since the policy was taken out."