- 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: –
- Will your medical history affect your premium?
- Yes, your medical history is a very important factor.
- Will your Mortgage Lender charge a fee if you buy your Life Insurance from someone else?
- No! By law mortgage lenders are not allowed to charge a fee if you buy elsewhere.
- 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.)
- Can you get a quotation now online?
- No. Kings, our Partner for Life Insurance Quotes , take your information online and then phone you back with details of the best policy they can find. They will also give you help to find the policy that suits your needs.
When you obtain quotations from various insurance companies, the companies have to make assumptions about you in order to quote. For example, they assume that you are in generally good health for your age, and you have a job and lifestyle that does not expose you to above average risks. For the vast majority of people this is quite true but not for everybody.
Therefore, if you decide to proceed and make a formal Application, you will have to complete a more comprehensive Application form. LifeSearch will help you with this.
When the Insurance Company receives your full application details, they consider whether they still regard you as an average risk. To make this decision they may decide to ask you for more information.
This is when an Underwriter will get involved. They use Actuarial tables and a great deal of experience to decide what level of risk your represent. Actuarial tables represent the Insurance Company’s experience over millions of insurance policies.
If after completing their risk assessment, the insurance company decides that you represent a higher risk, they ask you for a correspondingly higher premium. (This is called “Rating” your premium)
But don’t worry too much. The vast majority of customers end up being charged exactly the same as they were first quoted.
Occasionally, an application will be turned down because the Underwriter judges that the risk is too high. However, this only happens in a very small number of cases.