Why has my life insurance quote increased after applying?
An initial life insurance quote can increase when an insurer assesses information that was not included in the starting estimate. This assessment is called underwriting. It can affect the price offered, the terms available or whether the insurer can offer cover at all.
Not every quote changes. Some journeys collect detailed information before showing a price. Ask whether the figure you are comparing is an indication, a price subject to further checks or the insurer's final offer.
Why can the starting price be different?
An early quotation may use a small set of details, such as age, smoking status, cover amount and term. A formal application can ask more about health, medication, family history, occupation and activities. The questions and assessment differ between insurers.
L&G's application guidance distinguishes getting a quote from completing its fuller questionnaire. Its underwriting guidance explains that further information can lead to standard premiums, increased premiums or an inability to offer cover.
A request for further information is not itself a rejection. Answer what is asked accurately, and ask for clarification if a question is unclear.
What is a premium loading?
A loading is an additional premium reflecting the insurer's assessment of the application. It does not automatically mean all insurers will offer the same increase. Equally, another application is not a guarantee of a cheaper result.
Avoid interpreting the loading as a medical diagnosis. If you have questions about your health, speak to your clinician; ask the insurer or adviser about the insurance decision.
Check that the cover has not changed too
Before attributing the entire increase to underwriting, compare the original request with the final offer:
| Item | Question to resolve |
|---|---|
| Amount and term | Are both figures unchanged? |
| People insured | Is it still a single or joint policy as requested? |
| Extra benefits | Was critical illness cover or another option added? |
| Premium structure | Is cover fixed or increasing, and are payments guaranteed or reviewable? |
| Application information | Has a correction or newly supplied detail changed the assessment? |
For example, a life-only indication and an offer including critical illness cover are not directly comparable. Ask for a written breakdown before deciding that one insurer is simply more expensive.
What can you do if the final offer is unaffordable?
First, ask what changed and whether the information used is correct. Correct factual errors through the insurer or adviser; do not remove relevant medical information to try to obtain a lower price.
Next, decide which protection need matters most. A different amount, term or combination of policies may be worth discussing, but a lower price can mean less useful cover. Our guide to why cheap life insurance is not always better explains the comparison to make.
If there is an existing policy, include it in the discussion. Replacing it may mean giving up terms you cannot obtain again. Keep it in force while any proposed replacement is assessed and until you have checked acceptance, terms and start date.
Does a quote mean you are already insured?
Do not assume so. Check the insurer's acceptance confirmation, start date and payment requirements. Any temporary or interim protection is governed by its own specific conditions; it should not be inferred from receiving a quote or submitting an enquiry.
What should you have ready for a conversation?
Keep the initial illustration, final offer, application reference and any explanation of changed terms together. Note the monthly budget you can sustain and the financial need the cover should meet. That gives the discussion a clearer purpose than asking only for the cheapest policy.
Read our life insurance cost guide, or request a cost enquiry if you want to discuss an offer. Include that it has changed after application; an enquiry does not guarantee a lower premium or acceptance.
