Rather surprisingly, they found that of the 1964 people interviewed, 65% of them over-estimated the monthly cost of £150,000 worth of life cover leaving them concerned that potential life insurance policyholders are failing to take policies out before even obtaining quotations simply because they think the premiums will be too expensive!

L&G’s direct premium for £150,000 level term assurance over 25 years for a healthy, non-smoking male, aged 25, is £8 per month.

During Legal and General’s research, people were asked to estimate the monthly premium they would expect a healthy, 25 year old non smoking male aged 25 years for a 25 Level term Assurance covering the very same £150,000.

24% thought it would cost between £11 and £20 per month; 18% thought £21 to £30 per month and 22% at over £30. That’s over 400 people believing the cost to be some 375% higher than the actual premium!

Legal and General would charge a further £18.00 per month to make the policy Life and Critical Illness insurance and yet again, when asked, those interviewed came up with varying estimates up to more than £30 per month. In fact more than 400 people again, overestimated the cost of this additional product by some 166%!