Policyholders who have held life cover for many years may be overpaying on their monthly premiums with rates now cheaper than a decade ago.

Policyholders who have remained loyal to their insurers could be paying over the odds for their life cover, with premiums up to a third cheaper now than a decade ago.

According to London & Country (L&C), a broker, premiums for level-term assurance, where a cash lump sum is paid if the policyholder dies during the policy term, are now 20 to 30 per cent lower than they were in 2000 (see table).

“The drop in premiums has left many existing policyholders paying too much,” said Richard Morea, technical manager at L&C.