Price is the driving factor when people buy life insurance direct, according to research by direct life insurer NobleOak.

Its survey of more than 1000 people found 83.7% believe price is the key issue.

Other drivers are product features (62.8% of respondents), claims reputation (55.4%) and service levels (32.6%).

Lower premiums are a major factor in switching cover (36%), along with superior products (18%) and better service (6.9%).

Unsurprisingly in a survey conducted by a direct life insurer, 51.7% of consumers are happy to buy online, citing convenience as the main reason.

But NobleOak CEO Anthony Brown says the survey raises concerns over consumers’ understanding of some direct policies. One with limited underwriting at the time of purchase involves the insurer asking only a few health and lifestyle questions and completing the underwriting process if a claim is made, he says.

“This shortened application process can result in problems at the time of claiming when customers may need to answer more detailed health questions and supply a report from their doctor.

“Not only does this slow the process down at a time when a customer is emotionally distressed, but it could reveal a pre-existing condition with the claim being denied.”

Mr Brown says NobleOak’s policies are fully underwritten, with medical and health information collected at the time of application, giving more certainty at claim time.