Price is the deciding factor for 82 per cent of IFAs when choosing a protection provider, according to a survey by Lincoln Financial Group.
The research among 192 IFAs shows they value price ahead of service levels, flexibility of underwriting and payout levels.
The second most commonly cited reason for recommending a provider was its presence on portals, selected by 36 per cent of respondents.
Advisers predict that the price will continue to be the deciding factor in future, with 78 per cent saying they will continue to place their business with the most competitively priced providers.
Head of life sales and marketing Ian Noble says: “Competition in the marketplace has meant providers have been vying for business by lowering prices. This is good news for the consumer, providing the lower prices do not translate into tighter claims standards and more declined claims.
“But as always, price should not be the only concern for policyholders. It should be considered on balance with payout rates and levels of service.”