There are a number of reasons why life insurance is an essential type of insurance policy for anyone who has financial obligations or dependants. Life insurance will pay out a set sum, known as the sum assured, in the event of the death of the policyholder, or one of the policyholders in a joint policy. The premium paid for this insurance will depend on age, sex, health and the sum assured.
There are many types of life insurance on the market. The two most common are whole-of-life cover and term assurance . However, within these two types there are numerous different policies. For instance, term assurance can include decreasing term assurance (payout reduces every year), level term assurance and increasing term assurance. Less common types are convertible term assurance and family income benefit.
Whole of life insurance will last throughout the life of the policyholder, but will cost more for premiums. Many different types of whole of life policy are also available on the market.




