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A leading insurance brokers has advised that many consumers in the UK could start making significant savings on the cost of their life insurance cover by switching insurers, because the cost of life cover has come down dramatically due to stiff competition between insurance companies and increased life expectancy of policyholders.
 However, the broker also added that switching life cover may not be suitable – or even possible – for everyone, and consumers should assess their existing policies and their individual circumstances in order to work out whether they would benefit from switching providers.
The protection research manager from broker Hargreaves Lansdown, Jon Briggs, stated: 'If you bought a policy in the mid-Nineties, you might save money by switching, though you are less likely to save money by switching a five-year policy.'
The broker highlighted savings that could be made with an example of a thirty year old man buying a £100,000 cover policy on a 25 year level term and at a guaranteed rate in 1997. Ten years on, the same man could make savings of up to around seventy five pounds a year by switching providers.
However, Briggs added that a change of provider may not be suitable for everyone: 'If you have had any medical problems since you took out your first policy, you might not be able to switch. In any case, you should never cancel the old policy until the new one is in place. Beware also if you have written the policy in trust, so that the proceeds will be paid outside your estate. Rule changes mean the proceeds might be subject to tax. But this does not affect policies taken out before March 22 last year.'
'You might also be able to save money if you were a smoker initially and have been a non-smoker for over a year. But you should check with your existing insurer first.'
Tom Smith
14.03.07
Further Information:
- Save On Car Insurance Premiums - There are various ways to save money on your car insurance
- Reduce Your Home Insurance Premiums - Learn the best ways to reduce you monthly payments and also making your home a safer and more secure place
- Saving Money on Car Insurance - Insuring your car can be very expensive if you are 18 and living in a major city. For example, you are likely to find that the cost of insuring your hot hatchback is as much as the cost of the car!
- Update Your Home Insurance - Homeowners need to realize that keeping their insurance policy up to date is their responsibility. Any item bought or given as a gift is now inside the home, it could be an expensive painting or a crystal vase can be added to the contents insurance policy.
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