Life insurance can also be called life assurance. It is a contract which is formed between the policy owner/holder (You) and the Insurer.Life insurance is where the insurer agrees to pay a sum of money up on the occurence of the insured individuals death or other event such as a terminal or critical illness. If you want the policy to extend to critical illness cover, you will need to stipulate this when an advisor calls you. In return for this agreed sum of money, the policy owner pays a premium at regular intervals or in lump sums.
 
Level Term assurance

• This is where there is a lump sum which is payable on the event of death. This lump sum remains constant throughout the period of the life insurance term.

Decreasing Term Life Insurance

• This is where there is a lump sum is payable on the event of death. This lump sum decreases by a fixed amount during the period of the term, decreasing to zero/nothing by the end of the insured period. This kind of cover is typically used for mortgages or other loans where the amount owed decreases year on year, hence there is no need at the end to have a lump sum in the event of death.

Life insurance is a vital element... that many people simply try to cut out of their monthly bills. People tend to think that it will never be them. The sad fact is that, it tends to be these people who die without a policy, and leave their families struggling after their death.

Those who do have the comfort blanket of a life insurance policy, know that after their death, their family is looked after. Their family will not have to worry about how they will pay for the funeral, or pay for the mortgage and bills. At a time when that person should be grieving, they end up in financial distress as well.

People who do have a life insurance policy, never look into it again. They tend to leave their current policy running. But like anything, it is important to see if you can get a better deal. Either paying out less monthly, or getting a higher return if the worst happens.

Avoid this, and get a life insurance policy. It will mean you have to pay a little out every month. But ask yourself... What is the cost of not having it?