Click to take out bells and whistles

Ray Flannery, managing director of Click, said consumers were easily confused by the complexity of insurance products currently available that made them less inclined to take out the protection they required.

Mr Flannery said by removing the "bells and whistles" of life insurance and offering the most basic cover, consumers could then choose further benefits if they wished at a later stage.

He said: "It is a really difficult world at the moment, people are getting very price conscious so we start with the basics at the most competitive price we can get which we believe is about 10 per cent cheaper than most and then if people want more then they can have more."

Mr Flannery said Click was also looking at how other products, such as income protection, could be simplified so that they could be sold through the internet to the type of customer that may not seek out an IFA.

He said: "If you look at the retail distribution review most IFAs are going to move into that advice model and that is going to be fee-based rather than commission. That will leave a substantial amount of unserviced people for models like Click to service.

"If the customer needs advice they should get advice and if the customer needs to buy a simple product they should be able to buy a simple product."

Peter Chadborn, protection adviser for Colchester-based IFA CBK, said: "It is a valid point that there is a big proportion of society that may not get any protection at all. That said I do not believe the saving in cost is going to make many more people take out life insurance."