Young people advised to 'shop around' for life insurance

Young people who opt to get their life insurance from their mortgage lender because "it's the easiest thing to do" could be paying higher premiums than they need to.

That is the warning from Claire Moyles of Sainsbury's Bank who said this week that first time buyers are particularly likely to blindly place their life insurance with their mortgage lender.

"Not shopping around is a disadvantage for them because with life insurance your premiums do stay the same," she said, adding that "the younger and healthier you are, the cheaper your premiums will be".

With the average age of first-time buyers increasing as the housing boom continues, then life insurance premiums are proving more costly for those seeking to climb on the property ladder, an unwanted extra borrowing expense when negotiating a loan for a mortgage.

A survey by the Association of British Insurers (ABI) at the beginning of the year showed that one in three Britons have no life insurance.

A further one in three have not updated their life insurance cover for five years so may be under-insured.


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