What life insurance does
Life insurance can pay a lump sum if the insured person dies during the policy term. It may help dependants cover a mortgage, household bills or other financial needs.
Common cover structures
Level cover keeps the insured amount broadly fixed, while decreasing cover usually falls over time and is often aligned with a repayment mortgage. Joint policies commonly pay once and then end.
- Choose a term that reflects the need you are protecting
- Check exclusions and the definition of terminal illness
- Keep beneficiary arrangements under review
Cover should fit your circumstances
The appropriate amount depends on debts, income needs, existing benefits and family circumstances. Policy definitions differ, so compare the cover and terms rather than price alone.