The monthly average market life insurance premium has decreased for 74% of customer profiles over the last 12 months, according to research by Sainsbury’s Life Insurance.
The supermarket bank says its 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. 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
