Research by Sainsbury's Life Insurance suggests that the monthly average market life insurance premium has decreased for three quarters of customers 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. 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.
Lucy Hunter of Sainsbury’s Life says, "We have seen the term assurance market 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.”