and secure when you pass away. The best way to do this is to purchase a life insurance policy. There are thousands of different companies offering life insurance. But how do you choose an insurance policy that is right for you?
To help you to make an informed decision when you come to choose a life insurance policy, you need to understand exactly what a life insurance policy is, who needs a life insurance policy and how to distinguish between the different types of policy
In simple terms, a life insurance policy is a guarantee on the life of the insured person. When the insured person dies, the insurance policy will give their beneficiaries a specific amount of money. The insured person makes a payment, known as a premium, usually on a monthly basis for a given period of time.
The amount of the life insurance policy premium is usually determined by factors such as the age of the person, their gender, occupation, whether or not they smoke, medical history, along with the amount that is required to be paid out on death.
There are four main kinds of life insurance policy.