Jumat, 21 November 2008

Cheap Term Life Insurance

By Jason Hulott

Many people considering life cover will look for cheap term life insurance, because it is probably the simplest and least expensive way to protect their partner’s and family’s financial future in the unfortunate event of their death.

If you have dependants or a mortgage, then it makes sense to take out life insurance. A life insurance policy will help repay the mortgage on your home after your death, ensuring that your partner and/or family will not be left with financial difficulty to add to their grief.

As an example, your term life insurance policy can match the repayment term on your mortgage so that if you die before the end of the mortgage repayment term the life insurance lump sum will clear your mortgage debt.

While there are plenty of life insurance policies out there such as index-linked or joint life, it can be confusing knowing which policy is right for you. Also, the more convoluted insurance you buy, the higher the premium you will pay and that is why cheap term life insurance is an option favoured by many people.

Term life insurance is the cheapest form of life cover, paying out a lump sum if you die within a specified period. If you are still alive at the end of the term, then no payment is made – hence why premiums are so cheap as the insurer cannot justify charging a huge amount for your premiums as there is no investment element to a term life insurance policy.

No one wants to pay more than they have to for their life insurance, so how do you go about getting cheap term life insurance?

First of all, life insurance premiums are now up to 40% cheaper than they were a few years ago due to advances in medicine helping us all to live longer, so now may be a good time to either check your existing arrangements or take out a policy.

It is always a good idea to get several life insurance quotes before applying for a policy. This is because premiums - even for the ‘cheaper’ type of policies - can vary from provider to provider, so by getting a life insurance quote first, you can shop around for the most competitively priced life insurance policy.

You can get a life insurance quote from a number of places, such as your bank or other financial organisation, but probably the quickest and easiest, no-hassle way to get a quote is to do it online. There are websites that will give you an immediate online quote so that you can get a feel for how much your premiums will be.

Remember, however, that quotes are a guide only and they could change once you have completed a full application. However, if this does happen and you are not happy with the premium, you are not under any obligation to proceed with the policy.

Remember that when applying for life insurance, you should always tell the truth on your application form – no matter how negative you feel it might be. For example, if you are a heavy drinker or smoker or you don’t disclose your full medical history, you will get cover that may not be valid. This means that should you die and it turns out you lied on your application form, the insurers legally don’t have to pay out your claim.

Finally, don’t forget to check out the terms and conditions offered by the different insurers so that you can compare quotes on a like-for-like basis and get the cover that best suits your circumstances.

Jason Hulott is Business Development Director of Protection Insurance. Protection Insurance is an internet based insurance business dedicated to getting consumers the very best insurance rates and the best products. Our product portfolio includes many specialist products such as cheap term life insurance