Life Insurance Quotes UK

Today the UK market is awash with so many different life insurance policies that the consumer often doesn't know where to begin looking for a quote. In a bid to demystify matters we've set out to provide a succinct overview of what's available:

Level-term life insurance: The most common type of cover in the UK , level-term insurance guarantees a capital lump-sum payout should the policy holder pass away during the policy's term. Monthly payments are fixed and the policy has no financial value once it expires. Level-term life insurance is the cheapest form of cover available and is good starting point for anyone looking for a competitive quote.

Whole-life insurance: a capital lump sum is paid out when the policy holder passes away (the policy has no fixed term). Most whole-life cover policies are unit linked, which means that premiums are invested by the insurance provider, and the final payout depends on how the investments have performed.

Decreasing-term life insurance: Put together with repayment mortgages in mind, decreasing term insurance policies are intended to cover the remainder of the mortgage if the policyholder passes away. As the outstanding mortgage balance decreases; so does the insurance payout. Again: once the policy expires it has no cash value. Sometimes this type of insurance cover is also referred to as mortgage protection cover.

Family income insurance: A variation on the same theme as above, the main difference being that: instead of a single lump sum, the policy is paid out monthly, quarterly or yearly (until the policy expires).

Critical illness insurance: In the event that the policy holder is diagnosed critically ill (definitions vary from provider to provider) will receive a capital lump sum. This type of insurance is particularly suited to people without any financial dependants .

Endowment policies: A combination of a savings policy with life insurance cover. Fixed monthly premiums are paid into the policy and when the agreed term expires a capital payout is made. If the policyholder passes away during the policy's lifetime the beneficiaries receive either the assured sum or the policy value (usually the bigger of the two). Endowment policy quotes tend to be high precisely because of their dual function as a savings vehicle.

Once you've decided which policy is right for you, and shopped around to find the best quote, you'll usually receive a phone call from the insurance provider. If you're not happy with your quote this is the time to negotiate a better deal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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