Sainsbury's Bank insurance highlights overspending

Sainsbury's Bank insurance has warned that half of mortgage holders may be wasting thousands of pounds on their life insurance policies.

Research by the bank suggests that many people think that they have to use their mortgage lender to take out a policy covering mortgage repayments. Of those who know they can look elsewhere 22 per cent do not bother shopping around for a policy.

As a result many home-owners end up with un-competitive policies. According to Sainsbury's Bank's life insurance manager Donald Jarvie the difference between the most expensive and the cheapest life insurance premiums can total £2,927 over the life of the policy.

"There is no requirement to take cover from your mortgage provider, or to take the first quote you are given, so once you know what cover you need, there's nothing to stop you comparing the quote you get with a few other providers - you could find that you can make significant savings," added Mr Jarvie.