Sainsbury’s Life Index Shows Premiums Falling

by Gill Montia

Story link: Sainsbury’s Life Index Shows Premiums Falling

Sainsbury’s Bank is keeping track of life insurance premiums with its new Life Insurance Index, which will review market premiums on a six-monthly basis. The data is being supplied by Moneyfacts, the provider of financial information.

The index is based on level term life insurance premiums for 38 different risk profiles. It assesses the difference between the 25% most competitive and 25% most expensive insurers.

Data collected on September 16th 2006 and March 20th 2007 reveals that for the typical customer profiles reviewed, premiums fell overall.

It also confirms that the cost of cover varies greatly between different insurers, making the point that consumers need to shop around.

The data collected on March 20th shows a 66.2% difference between the average premium of the 25% most competitive providers and 25% most expensive.

This equates to £8.36 a month. Across the 38 different profiles, premiums fell during the six month period for 27 profiles (over 70%). Amongst the most competitive insurers, the difference between the average premium and the market average is 25.75% or £3.25 a month.