What type of term life insurance quote can you get online?
There are two main types of life insurance cover to choose from: term life and whole life. Whilst term life insurance provides a lump sum on death for fixed premiums, a fixed amount of insurance and for a term of years that you decide, term life insurance is more flexible. Term life insurance is a low-cost type of life insurance that covers you only for a certain period of time, not for your entire life. Should you die during the period of your term, your beneficiary will receive the death benefit. If you survive the term of the policy, it expires and no benefit is paid.
Therefore term life insurance is ideal when coverage is only needed for a certain period of time or the short-term cost is the over-riding factor. In your early years, term life insurance costs significantly less than whole life or other types of policies, but becomes increasingly expensive as you age. There are various types of term life insurance policies available online, including level term life insurance, for which your premiums are set at a level at the beginning of the contract and do not increase or decrease. As a result the sum assured remains the same throughout the term, which may be seen as a disadvantage, as it does not take into account inflation.
Also available is increasing term insurance, which despite being a fixed term policy, sees the sum assured increase, either by a set percentage or by the retail price index (RPI) throughout the term of the policy. Your premiums are constant throughout the term if the sum assured rises by the set percentage, or in accordance with the RPI provided the sum assured does the same. There is also renewable term insurance, where the policy term is less, most often five years, and can be renewed, though the assured sum cannot be increased, and the premiums increase with your age, though there is such a policy type called renewable increasable term insurance, which is under the same terms but allows for an increasing assured sum. There is also convertible term insurance, which includes the option of converting parts of the sum assured into whole life, endowment or further term assurance without you having to undergo further medical tests.
Finally there is decreasing term insurance, where the sum assured decreases over time, so your premiums are lower. This is most commonly used to cover a mortgage. As with most types of Insurance, the Life Insurance market is very lucrative for Insurance Companies so there are many companies to choose from, and many now offer quotes online for all the above types of term life insurance.
Disclaimer: The information contained on this page is not intended, nor should it be construed as providing any form of financial advice or guidance as to which insurance product/policy is right for you. If you are unsure as to which product meets your requirements/needs you should always seek advice from an Insurance Professional.