Research Reveals Cost Saving Benefits Of Up To £200 For Shopping Around For Life Insurance(1)

27 February 2012

Research(1) by Sainsbury’s Life Insurance has revealed that the monthly market average life insurance premium has fallen for the second consecutive year. The analysis(1) shows that premiums for all customer profiles have fallen, and there is a significant gap in price between the most competitive and most expensive policies.

Helen Williams, Sainsbury’s Life Insurance Manager, said: “The fact that life insurance premiums continue to be competitively priced is great news for consumers. But this research clearly shows that in order to get the best level of life insurance cover for your family at a competitive price, it’s vital to shop around and compare policies on a like-for-like basis.”

For level term insurance policies, the analysis revealed that on average, an annual saving of £91.54 could be made, which translates to a 42% price difference between the most competitive and most expensive premium. For those seeking a policy that includes critical illness cover, consumers could save around £213 on their annual premium which is 31% of a difference between the lowest and highest premium.

In addition, quitting smoking remains one of the most significant actions consumers can take to reduce the cost of their cover, with the typical premium for non-smokers costing 41% less than for smokers.

Helen added: “Having Critical Illness Cover can mean the difference between continuing to live the life you’ve carved out for you and your family, or having to make big sacrifices, for example even forfeiting the family home, should you become ill and be unable to work. And with cover becoming more competitive, now is a good time to ensure you’ve protected your family in the event of illness, or death.”

New Sainsbury’s Life Insurance customers could receive a £40 gift card(2) as well as double Nectar points for two years on all Sainsbury’s shopping and fuel(3). When using their Nectar card at the point of purchase, customers could benefit from the equivalent of up to 2% off their Sainsbury’s purchases(3).

Annual price movements for standard term life insurance policies

Source: Moneyfacts January 2012/January 2011 (Monthly premiums quoted)


Annual price movements for standard term + critical illness cover life insurance policies


Market premium average Average premium of 25%most expensive providers Average for 25% most competitive providers Difference in premiums for cheapest quartile compared with most expensive Percentage saving for cheapest quartile compared with most expensive
Premiums as at January 2012 £45.96 £54.63 £40.82 £13.81 25.3%
Premiums as at January 2011 £46.81 £57.55 £39.82 £17.73 30.1%
Annual change (£) £0.85 £2.92 £1.00
Annual change (%) 1.8% 5.1% 2.4%

Source: Moneyfacts January 2012/January 2011 (Monthly premiums quoted)


When you know what cover you require, please contact Sainsbury’s Life Insurance for a quote or further information on 0800 027 7166 (calls may be monitored and recorded). Further information is also available at or in store at Sainsbury’s. Sainsbury’s Life Insurance does not offer financial advice.


For further information, please contact:

Phil Anderson/Tom Wilson
Citigate Dewe Rogerson
020 7638 9571

Notes to Editors:

(1) Sainsbury’s Finance commission Moneyfacts to conduct a review of life insurance premiums for both standard term and standard term+ critical illness cover. The study compared quoted rates for all providers in January 2011 and January 2012
(2) Offer ends 9th July 2012. Terms and conditions apply, for full details.
(3) Terms and conditions apply. Points are not available on a limited range of Sainsbury’s goods and services – see in-store or for details. Offer only available to customers who take out a new Sainsbury’s Life Insurance policy, excluding Sainsbury’s Over 50s Fixed Life Insurance Plan. You must continue to pay policy premiums for 2 years to continue earning double points. If the policy is cancelled, double points will cease from the cancellation date. Only the first Life Insurance policy registered against each Nectar account will qualify for double points. You may qualify for additional points by taking out other qualifying products. For full terms and conditions please see for details.

Sainsbury’s Finance:

To view our latest press releases and product information, please visit the Sainsbury’s Finance online media centre

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Finance provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

Sainsbury’s Finance recent awards include Best Overall Online Provider, Best Online Pet Insurance Provider, Best Online Personal Loan Provider and Best Direct Home Insurance Provider at the Your Money Awards 2011. It was also named Most Competitive Term Assurance Direct Provider at the Moneyfacts Awards 2011.

Sainsbury’s Finance is a joint venture between J.Sainsbury plc and Lloyds Banking Group.
For further information and general Sainsbury’s Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit

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Market Premium Average Average premium for top 25% most expensive providers Average for 25% most competitive providers Difference in premiums between cheapest and most expensive providers Percentage saving for cheapest quartile compared with most expensive
Premiums as at January 2012 £13.35 £18.37 £10.74 £7.63 41.5%
Premiums as at January 2011 £14.09 £19.45 £10.86 £8.59 44.2%
Annual change (£) £0.74 £1.08 £0.12
Annual change (%) 5.3% 5.6% 1.1%