Research by life and protection comparison website money-minder.com has found that the lowest and highest premiums for simple level term life assurance bought online can differ by as much as 30%.
Using one example, a 31-year-old male non-smoker taking out £200,000 worth of level term life assurance for 25 years found the lowest guaranteed premium of £9.60 per month compared to £13.58 from another insurer. Over the lifetime of the policy the difference would amount to a saving of £1194.For smokers the savings could be even higher.
Ray Black of Money-minder.com comments, "With something simple like level term life insurance it is very difficult to argue that it is worth paying a bit more to get insurance from one provider over another. The trigger for making a claim is indisputable so there should be very little between the services insurers provide. Although one insurer may say that they can issue a settlement a bit quicker than another you have to ask if that is worth paying an extra £1000 or more for."