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December 4, 2011

What are the best life insurance quotes

Before you can find the best life insurance quotes, you may need to reflect on what it is that you mean by best.

For example, are the best life insurance quotes those that are the cheapest or would you consider a policy which offered the highest lump sum pay out, to be the best?

Types of cover

While the basic principle of a lump sum payment to your family should you die remains the same, there are different types of life insurance policy available. There are also a number of ways that you may typically tailor the type you choose to match your own particular set of circumstances.

So, for example, you may opt for a policy that has:

• a lump sum payout, which decreases over time to tie in with a repayment type mortgage where the balance outstanding also decreases with each repayment you make – this is a decreasing term policy.

• a lump sum agreed at the outset of the policy and which doesn’t change over time – this is called a level term policy.

It may be worth noting that for either of these options, the monthly premium is likely to remain the same over the term of the policy.

You may also be able to combine this type of cover with critical illness insurance, which may provide a lump sum in the event that you are diagnosed with a life threatening illness.

Options

Once you have chosen the type of cover that you’d like, you may then need to choose:

• how long to you want the cover to last (the term of the policy) and this might correspond to the length of time your mortgage has to run or how long you have until you retire etc.

• the amount of cover you want (the size of the lump sum) – again, this may be tied into the amount of mortgage you have outstanding or an amount to provide your family with a bit extra once all the major bills were taken care of.

Premium prices will vary depending on the options that you select.

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