Why will my premium be so high?

Q I have just been accepted for life insurance to cover a mortgage, as well as long-term illness cover if I cannot work but I am unhappy with the premium, which is almost double the original quotation on medical grounds.

I am 28, and have never suffered from serious illness. I smoke very occasionally which I disclosed when applying for the policy. One possible factor is that my father died at 45 from a heart attack - but no one else in my family has ever suffered a premature death due to illness.

I do not understand why the insurer sees me as such a risk. Should I seek a policy from another company or will I be subject to a similar level of premium? If I took the policy out could I change to another company easily?

JL

A You do not say whether the life cover was offered by your mortgage provider or was in any way linked to your mortgage - but you certainly do not have to put up with an excessive quote.

Simple life insurance is usually very cheap, although any cover for critical illness or income replacement insurance is pricy, and this is probably where the high cost of your premium comes in.

It is certainly in your interests to shop around for a better life quote - both Moneyfacts and MoneySupermarket offer quotes from a wide range of insurers for term life insurance.

If you want a more comprehensive policy to cover your income in the event of illness you might be better off seeing an insurance broker - contact the British Insurance Brokers Association on 020 7623 9043.

Finally, even if you do accept this quote, you can always cancel it - the Association of British Insurers' guidelines insist all their members give a cooling-off period during which the policy can be cancelled before even a single premium is paid.

Alternatively, you could accept the quote and cancel the policy at a future date - but check the policy wording for any minimum contract terms first. These do not usually apply to life insurance but may well sneak in to an income replacement policy wording.