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What is Life Insurance ?

Essentially life insurance is taken out to cover your debts and/or leave a sum of money to your dependents if you die.

You pay a monthly (or annual) premium to a life insurance company for a set period or term (this is why it is also called term assurance). The amount you pay is determined by the life company and depends on your age, health, family history and any risky occupations or hobbies (see Special risks).

Life insurance also comes in several forms:

  • Level term assurance - the sum assured remains the same throughout the term of the policy.
  • Decreasing term assurance - the sum assured decreases through the term of the policy. This is usually used to pay off a mortgage or a loan.
  • Family income benefit - pays a monthly sum to your dependents for the remainder of the term of the policy.
  • Whole of life assurance - covers the whole of your life and pays out whenever you die. Useful for inheritance tax planning or to cover funeral costs.

How much life insurance?

Have a look at our quick calculator for a rough guide.

Get an online quote now. It is free, no obligation to purchase and may be cheaper than you think.

Not sure what life insurance you need?

Give us a ring on 0800 458 3525 or fill in our ENQUIRY FORM and one of our advisers will give you some expert, no obligation advice.