There are two types of life insurance commonly available on the market, term life insurance and investment type life insurance. Investment type insurance provides a pay out both it you survive the term of the policy or if you don't. It is consequentially much more expensive than term life insurance which is a protection only type of insurance policy.
Life insurance is also sometimes known as term insurance, because it covers you for a set term � usually up to around 20 years � you can set the term at say the number of years until your children ought to be financially independent. Nothing is paid out if you do not die during the 'term' of the insurance coverage.
Term life insurance quotes are available in two strands, life insurance and life insurance which is tied to your mortgage. Term life insurance policies do not tend to have cash in values, and provide peace of mind that should something fatal happen to the insured his or her dependents will benefit by way of a cash payment.
Mortgage Life Insurance decreases as the outstanding balance of your mortgage decreases. This option provides a cost-effective way of ensuring that your partner or children are not deprived of their family home. The lump sum payment of mortgage life insurance is sufficient to clear the balance of your mortgage. Full life insurance lets you protect not only your home, but ensure that those who you leave are financially secure for the future taking into account the loss of your earnings.
When shopping around for term life insurance you should determine amongst other things which policies are able to provide you with the level of cover you require, whether your policy will be renewable, whether the benefit is paid out as income or as a lump sum and whether you can insure your premium against say being unable to pay it due to illness. Premiums are effected by your general health at the start of the policy and smokers, for example, are penalised with higher premiums reflecting their higher risk profile. Check to make sure that there are no exclusions which would prevent your benefit from being paid. Finally, is the company you are thinking of buying your life term insurance cover through reputable?
Term life insurance is a complex area of insurance and you should consider getting independent financial advice from an Independent Financial Adviser (IFA) who deals in term life insurance quotes.