Life insurance is such a potentially long term commitment for many people it is perhaps natural that many people should be looking for ways to find the cheapest life cover option. However the cheapest option may not always be what is most appropriate.
- The most common form of life insurance is level term assurance. Here a customer will have a fixed period of time during which they pay fixed premiums. If the policy holder should die within that fixed time period, the insurance will pay out a pre-determined sum.
- Increasing term assurance is similar to a level term assurance policy, with the key difference being that the extent of the cover provided increases on an annual basis.
- Decreasing term assurance is a form of life insurance where the cover decreases at fixed intervals. If an individual is looking to take out a policy in order to insure the mortgage is paid, they can take out a mortgage protection assurance, the cover reduces in line with the size of the mortgage assuming the mortgage is being paid off over time.
What life cover is right for you depends on your circumstances. As part of the underwriting process the insurer will take into account your previous medical history and lifestyle so what you are quoted initially may be adjusted once the insurance company has assessed your application. If you are unsure of your options you should get advice.