A life insurance policy is defined as a deliberate contract between two parties namely the insured (you) and the insurer (the insurance company) to guide decisions and course of action brought about by the purchased life insurance protection for the insured. It is basically a legally enforced contract that will define the protection extent and what will happen if you do die, also the way the proceeds will be paid and also the beneficiaries.

If you are looking at the different types of life insurance quotes, then there are generally two types that the market provides. The first type is called whole life insurance, sometimes also referred too as universal life insurance. This is the most common of life insurance products that you will come across. It is also the simplest of all policy types as it is a pure insurance product where you are simple buying coverage and nothing more. The life insurance policy terms is very simple, all you have to do is pay the premiums at a set date (normally monthly or yearly) and you will enjoy the coverage until such time that you lapse the payment or you decide to cancel the plan.

The upside to whole life insurance policies is the ease of use how easy it is to understand. It is also good because unlike other insurance products it does not have any other associated benefits which mean whole life insurance is the cheapest barebones policy that an individual can obtain.

The obvious downside to this is that whole life insurance fails to factor in the time value of money and inflation which over a number of decades can reduce your payouts at the end of your policy to a fraction of what its original value was. This can’t be blamed on the insurance company but rather the time value of money which always decreases over time. In order to save this from happening you have to actually increase your monthly or yearly premiums by the default inflation rate. Some insurers will have your premiums pegged to the inflation rate so that you will not have devaluation of your policy over time.

Another type of life insurance is regularly sold is term life insurance. The main difference between term life insurance and whole life insurance is that term means that your risk is continually assessed on a yearly basis. This means that unlike whole life insurance term life insurance has premiums that are variable going up or down depending on the risk category you are at the time of renewal. The cost factor of term life insurance is directly linked to characteristics of the policy holder, namely the policyholder’s age, health, family history, criminal record and also driving record.

Below we have listed some of our preferred life insurance companies and we hope that you consider them when looking for your next life insurance product.

Firstly here is our pick of the cheapest life insurance provider:

Another budget insurer that we like is 2insure4less with details below: