Consumers pay 40 per cent too much for life cover
13 July 2004
Thousands are paying over 40 per cent too much for their life insurance, says new research.
The cost of life cover depends on two main factors: health and age.
But an increase in the number of insurers in the market has recently made the market more competitive.
Supermarkets such as Sainsbury's and Asda are now on the life insurance bandwagon, offering basic term life assurance policies.
The director of financial services at Asda, David Rutley, said: "We may not have cracked the secret of eternal youth but some people could still roll back the years and pay the same or lower prices for life insurance than people younger than them, simply by shopping around and switching providers."
On average, life insurance premiums double for every ten years of a policyholder's life.
Yet in recent years, the average cost of life insurance policies has fallen sharply mainly as a result of people living longer and generally healthier lifestyles.
Even so, recent figures published by IFA Promotion revealed just four in ten people actually have life insurance.