British Gas moves into life insurance

British Gas has launched a life insurance service – offering rates much lower than many High Street names.

Neale Phillips, head of financial services for British Gas, said: “The majority of our customers arrange life insurance when they move home and, with one million annual home movers, this is a logical and valuable new service to provide.”

The service combines a thorough search of some of the leading UK life companies’ premiums with a simple application process. It is designed to reduce the usual time taken to apply for insurance. Customers will be helped over the phone with the application form.

“Our research confirms that the provision of this kind of superior service at a very busy and stressful time will be welcomed by our customers,” said Neale.

British Gas Life Insurance offers a 34-year-old male non-smoker seeking £100,000 cover over 25 years a rate of £9.13 a month. The nearest to that currently is Tesco at £9.80, while M&S Money offers £15.25.

The customer in this example would save £1,836 over 25 years by choosing British Gas rather than M&S. (Actual premiums and savings will depend on individual circumstances.)

A woman aged 40, who smokes and wants the same level of cover for 20 years, would pay £16.81 a month. Again, Tesco is nearest – but at least £2 more expensive. At Standard Life, it’s £24.51.

The new service is also targeted at customers looking to switch away from their current life insurer.