The company calculates that over a typical 25 year term, customers could save 18 months worth of premiums, more in some cases.
It says that life assurance premiums already offer excellent value for money but few people may be aware that by paying for their cover on a once a year basis rather than every month they could make further savings or buy more cover for the same price.
Standard Life gives customers who choose to pay their premiums annually a discount. For example a male non-smoker aged 35 next birthday would pay £10.02 a month for £100,000 of life cover for 25 years which over the course of a year would cost them £120.24. However if they chose to pay annually the cost would only be £113.00 giving them a saving of £7.24. Over the course of the term of the policy this saving would equate to 18 months worth of premiums. A similarly aged non-smoking female would see savings amounting to 20 months premiums.
The company’s Protection Online system has been designed to cater for this option by allowing advisers to click to gain savings for their customers.
Mick James, Marketing Manager Protection said, “When you insure your car, house, or holiday you would expect it to cost less to pay annually rather than monthly. Why should life assurance be any different?”
“Recommending annual premiums not only saves customers money but demonstrates the value of financial advice to people who might have simply signed up for monthly premiums in a non-advice situation.”
Standard Life believes that if the cost of life assurance starts to rise the option to pay premiums annually could be a useful means to keep the cost within many people’s budgets.
