Life insurance consumers overpaying by £1.2B annually: DeadHappy

On 25-year policies

John Brazier
clock • 2 min read

Customers with 25-year life insurance policies are overpaying by as much as £1.2 billion every year according to DeadHappy.

According to the insurance provider's research, a combination of overpaying for premiums worked out on average basis over the 25-year period and cancelling policies that are "no longer fit for purpose" means that customers are significantly overpaying each year for their life cover. DeadHappy stated that because policies are set up where the price is averaged over 25 years, consumers are overpaying in the earlier 15 years to compensate for the later 10 years. Inflexibility is also causing people to cancel or change policies on average every seven years, the insurer stated, meaning cus...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Advisers need to create ecosystems to support with dementia: Rose St Louis

Advisers need to create ecosystems to support with dementia: Rose St Louis

"We really need to be thinking holistically"

Jaskeet Briah
clock 24 June 2025 • 6 min read
ProtectZ morning round-up

ProtectZ morning round-up

"It's scary to think ahead to retirement age"

Jaskeet Briah
clock 19 June 2025 • 3 min read
Quarter of mid-lifers have sought advice: Royal London

Quarter of mid-lifers have sought advice: Royal London

Hold the most protection products

Jaskeet Briah
clock 17 June 2025 • 3 min read