Is the price I'm quotes the price I will pay ?

"About 88% of applicants for life insurance will pay the quoted price. The remainder will have to pay more. We explain why below", says Charles Challiner spokesman for Lloyds Insurance Underwriting.

Is the price quoted, the price I pay?

We are afraid the answer is usually but not always - it depends" upon a number of factors.

When the insurance company gives you a quotation it hasn't seen your full details so it has to make various assumptions about you. For example, it assumes that you are in good health for your age, that you don't have an occupation that can represent an additional health risk, that your blood-line family doesn't have a history of inheritable ill-health and that you don't take part in any hazardous pursuits or sports. It also assumes that you don't regularly visit countries with known health problems (e.g. Many African countries and Central America).

If the answers on your application form do reveal any potential problems, the insurance company will almost certainly ask for additional information. They may also ask questions if you're asking for a large sum to be insured.

They use all the information before them to assess the level of risk they are being asked to insure. Once they have analysed the information, they decide whether your initial quote can stand or whether a higher premium is required. If they do increase your proposed premium, your premium is said to be a RATED .

Don't worry too much if the insurance company does ask for more details, or even a medical examination. It doesn't necessarily mean the premium will be rated. Many people who are asked additional questions or who have a medical (which by-the-way, the insurance company pays for), still qualify for the initial quoted price.

To matters in context, 88% of people who buy life insurance through the Internet will eventually pay the same as their original quote.