There are two types of life insurance coverage – term or life. Term Assurance policies pay a tax free lump sum should you die at any time during a fixed period. The second type of life policy provides cover for the rest of your life.

What life insurance could do for you depends largely on the financial arrangements you make for your dependents. For example, your partner could use the lump sum to pay off a debt such as a mortgage or use the money to provide an income.

If you choose a Term Life Insurance policy, you will receive a lump sum if you die during the period covered by the policy. You can either pay premiums each month or if you prefer, annually in advance. The premiums will vary according to how long you want the life insurance cover for and other factors such as your age, occupation and medical history.