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You need to consider a number of factors when choosing the right Life policy. Life insurance generally refers to cover that pays out a one-off lump sum, generally to cover the amount owing on a mortgage, in the event of a claim.

The first thing to ask yourself is why you are getting it. Normally, life cover is most suitable when there are two people on a mortgage.

In the event that one of the two mortgagees were to pass away the survivor would then be mortgage free. If there is only one mortgage holder, they are not too likely to be concerned with paying off the mortgage should they pass on.

The second factor is guaranteed versus reviewable premiums.

A policy with guaranteed premiums has premiums that will never change for the duration of the term. They are guaranteed to remain the same.

Reviewable premiums are normally cheaper to start, but the insurer reserves the right to adjust premiums in the event that your health begins to suffer.

The third thing to think about is whether you want a level-term or a reducing-term policy.

A level-term policy will pay out a set amount at any point during the term should there be a claim. Normally, this form of policy is used in conjunction with an interest-only mortgage, as the amount you owe remains constant over the term.

A reducing-term policy is normally used with repayment mortgages. The amount paid out in the event of a claim will reduce in line with the mortgage.

Given all other factors being equal, reducing term policies are usually more cost-effective.

The final factor to consider is whether you want additional Critical Illness cover.

Life policies with Critical Illness cover included will pay out the full amount in the event of either one of the policy-holders passing away OR one of the policy holders contracting one of the illness or conditions listed in the policy Key Facts document.

These illness normally consist of most forms of cancer, heart attack, stroke as well as a number of other conditions. While it may be desirable to have CI cover, bear in mind that it will more than double your life premium.

The above factors will help to determine the cost of your premium. Other factors are your age, the length of the term an whether or not you smoke.