Questions About The Price of the Service
- Is the price I’m quoted, the price I pay?
- Are there any extras to pay?
- Will my premiums increase?
- Do smokers get charged more?
- If my policy is “Rated”, what does it mean?
- Why is Mortgage Life Insurance cheaper than normal Life Insurance?
Is the price I’m quoted, the price I pay?
We are afraid it isn’t always. It depends upon the details you disclose in your full Application form.
The quotation we provide assumes that you’re generally in good health for your age, you do not have a job that represents a risk to your health, your blood-line family does not have a history of hereditary ill-health and you do not follow dangerous pursuits or regularly visit countries with known health problems.
If any of these conditions do not apply, then the insurance company will want more information. They may also ask more questions if you are asking for a large sum to be insured. This is all fair enough as they need to know what level of risk they are taking on in order to decide whether they can stand by their original quote.
If the insurance company asks for more details, or even a medical, it does not necessarily mean that they will charge you more.
To put things in context, in our experience 88% of people who apply for life insurance qualify for the initial quoted price.
The following Frequently Asked Question is related to the above topic. Click here if
you wish to read it: -
Will my medical history
influence the premium?
Are there any extras to pay?
Absolutely not! When you buy life insurance through ClickLife there are no hidden extras.
The Insurance Companies pay discounted commission to ClickLife and they work on that. Nothing else.
From time to time you may come across a web site that charges fees as an alternative to commission. If this is the case, you will pay the fee up front and the fee will attract VAT (commission is exempt of VAT.) That is why ClickLife receive commission – they avoid charging you VAT.
The following Frequently Asked Question is related to the above topic. Click here if
you wish to read it: -
Why are the insurance prices on the
Internet so low?
Will my premiums increase?
The answer depends upon whether you have a “Reviewable” or “Guaranteed” a policy.
With a “Guaranteed” policy the insurance company guarantees that it will never to raise your premium. { mortgage trail }
If you have a “Reviewable” policy your insurance company reviews its premium at regular intervals. This is usually between 1 and 5 years. However, the interval does vary between insurance companies and you should check their literature. At the Review date, the insurance company has the right to increase your premium and as you get older, increases will become more probable and larger.
As you may have anticipated, when you first start a policy, “Guaranteed” policies have higher premiums than “Reviewable” policies. However, through the reviews the premiums for Reviewable policies can soon catch up.
In the medium to longer term we expect Reviewable policies to work out more expensive than mortgage Guaranteed policies. On the other hand Reviewable policies do have the advantage of a low start up premium and this appeals to many people.
The following Frequently Asked Question is related to the above topic. Click here if
you wish to read it: -
Why are the insurance prices on the Internet
so low?
Do smokers get charged more?
Yes, smokers do get charged more. But it is useful to consider the life insurance company’s definition of a smoker:
They usually define a smoker as:“a person who used, smoked or otherwise consumed any kind of nicotine products during the previous 5 years.”
A few insurance companies have shortened the qualifying period from 5 years to 12 months. If you have given up smoking during the previous 1 to 5 years, you will save a lot of money by seeking a quotation from an insurance company which uses the 12 month definition.
When an insurance company calculates its premiums, it has to work out how long they expect you to live. (Or with Critical Illness Insurance, how likely you are to become seriously ill during the proposed policy’s term.)
To do this they will take into account whether you smoke, your age, your health record, and your occupation.
Research has shown that smoking can damage your health. Consequently, insurance companies require higher premiums from smokers. All insurance companies will ask you to complete questions about the type of and quantity of tobacco products you use. They use this information to forecast your future health and this information becomes a vital part of their risk assessment.
Even though some Pro-Smoking Pressure Groups argue that smokers under the age of 40 have about the same probability of death as non smokers, a typical 25 year old man can expect to be charged up to 50 % more for a 15 year life insurance policy than a non-smoker. { mortgage explorer }
Therefore, becomes even more important for a smoker to seek out the cheapest possible insurance premium.
The following Frequently Asked Question is related to the above topic. Click here if
you wish to read it: -
Is the price I’m quoted, the price
I pay?
If my policy is “Rated”, what does it mean?
If your policy is “rated” it means that the insurance company considers you to represent an above average risk. Consequently, they will only agree to insure you if you pay a higher premium. (In certain situations they will simply decline to insure you.)
To put this process in context, we understand that only around 12% of cases insured through the Internet are “rated”. The remaining 88% of applicants pay exactly the same as they were quoted online.
An initial quotation assumes that you are in good health for your age, you do not have an occupation that can represent a risk to your health, your blood-line family does not have a background of ill-health that could be inherited, and you do not follow dangerous pursuits or regularly visit countries with known health problems. The insurance company includes questions about all these matters on their Application form which you will receive if you decide to proceed having received your online quotation.
If you do not have any of the above additional risks then your initial quotation will stand.
If you do have any of the above additional risks, then the insurance company will start by asking for more information. They may also ask for more information if you want a large sum to be insured. This is fair enough as they need to be sure the level of risk they are potentially accepting.
If the life insurance company does ask for more information, then this information goes to one of their Underwriters whose job it is to assess the level of risk they think you represent. They use Actuarial Tables for this which are based on the company’s experience over millions insurance policies. It is then the Underwriters job to decide what your premium should be.
If the insurance company does ask for further information, or even a medical, it is not necessarily as bad as it may seem. Many people who are asked for additional information or who have a medical (which by the way, the insurance company pays for) still qualify for the price quoted online.
The following Frequently Asked Question is related to the above topic. Click here if
you wish to read it: -
Will my premiums increase?
Why is Mortgage Life Insurance cheaper than normal Life Insurance?
Mortgage Life Insurance is a special type of policy designed specifically for people with REPAYMENT mortgages.
With a repayment mortgage, the capital you owe your mortgage provider decreases each month as part of your monthly repayment pays off the sum you initially borrowed. The purpose of your insurance is to repay the capital you owe and therefore, the amount of insurance cover you need decreases in line with your outstanding capital. This means that the insurance company can afford to charge less in comparison with a policy where the sum insured remains constant - as is the case with normal life insurance.
The following Frequently Asked Questions are related to the above topic. Click here
if you wish to read them: -
Will my premiums increase?
I have an interest
only mortgage. What sort of life insurance do I need?
How much should
you insure for?
This web site is owned and managed by Alliance Internet Ltd.. Alliance Internet Ltd is an Appointed Representative of Financial Connexions Ltd. Financial Connexions Ltd is authorised and regulated by the Financial Services Authority.