Why are the insurance prices on the Internet so low?

The Internet is undoubtedly the cheapest marketplace to buy insurance. There are two main reasons: -

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

Is it better to have a Guaranteed or a Reviewable premium?
In the medium to longer term we believe that a Reviewable policy will cost you more than a Guaranteed policy. On the other hand Reviewable policies do have the advantage of a lower premium at the outset and this appeals to many people, especially if budgets are tight.
Why is insurance more expensive for smokers?
On average, the premium for a smoker is around 65% higher than a non-smoker. The reason is quite simple – non-smokers are generally healthier and live longer.
If my premium is “Rated”, what does that mean?
If your premium is “Rated” it means that the insurance company will only agree to insure you if you pay a higher premium than the one they originally quoted. This happens because, following receipt of your Application and any follow-up information they required, the insurance company believes you to represent an above average risk. (In extreme situations they will simply decline to insure you.)
Does your age affect your premium?
Yes, your age is one of the most important aspects that determines your premium. (Other important aspects include the level of cover you want, whether you are male or female, whether you are a smoker, your occupation and health record.)
What correspondence can you expect to receive after your Application has been submitted?
It all depends upon what complications arise from the details on your Application.
The Internet’s selling costs are much lower compared with the traditional Financial Adviser sitting in your lounge. In addition, there is intense competition on the Internet for financial services. Low operating costs and strong competition have effectively forced the Internet into a low price environment, and that’s especially true for life insurance.

However, we have found that as many as 50% of people looking for life insurance do not get exactly what they want. They would in fact be a lot better off with the help of a professional - so they not only get the cheapest deal but the right deal. That's why we'll arrange for LifeSearch to call you!

Frequently Asked Questions related to the above topic.
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