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Life Insurance

It is rare to find anything that, no matter the price, provides the exact same quality. One of those rarities is level term life assurance. Simply explained, the policy pays a fixed amount should you die during the life of the policy. For instance, if you take out a £200,000 policy for 20 years then your nominated beneficiary receives £200,000 should you die during the 20 years of the policy. Keep in mind that with this type of policy the premiums that you have paid are not returned at the end of the policy.

This kind of policy is particularly well suited to those that have an interest only mortgage that is not covered by an endowment policy or for family protection so that they have a lump sum to invest in the event of your death.

It is important to shop around for the cheapest provider before making a final decision. Banks, building societies and even supermarkets have muscled into this lucrative market. Specialist online life insurance brokers such as Godirect.co.uk, Moneyworld and Cavendish Online are worth considering – they are particularly competitive because they pay back some, or all, the commission they receive from insurers. Also visit the major price comparison websites such as Moneysupermarket.com, Comparethemarket.com and Confused.com. It is also worth visiting cashback websites such as Quidco and Topcashback. Bear in mind that cashback and voucher deals are only beneficial if they are suggesting an insurer and premium amounts that were already competitive.

Armed with all of the quotes from the above, it is then worth checking a few of the insurance companies that are not accessed by brokers and comparison websites. These would include Suncorp, Sun Life Direct (no relation to Suncorp) and Smart Insurance.

The answers that you provide to the questions they will all ask will influence the premiums that you pay. There are a few simple things that you can do to reduce the premiums. Live a healthier lifestyle and, in particular, quit smoking before getting quotes. Avoid taking out additional policies that some will try and sell to you such as critical illness or job loss cover. Also take out the policy for no longer than is required.