Sainsbury's Bank has found that 78 per cent of consumers spend too much on life cover.
Additionally, of the 3.5 million people who will take out a policy next year, many could end up paying 150 per cent more than they need to - a study by Consumer Intelligence has found.
This investigation also revealed that most existing policyholders could save 30 per cent, or £118, on their annual bill and keep the same level of cover.
Donald Jarvie, life cover manager at Sainsbury's Bank, said: "Premiums have fallen over the past few years so it's worth finding out if you could save money or increase your level of cover at no extra cost by switching provider.
"Any decision to switch should be made carefully and we urge people to make sure they are covered by their new provider before cancelling an existing arrangement," he added.To read more about life insurance, click here.
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