JobzbrvWhat life insurance is, who needs it and how the main types differ, in everyday language.
What it actually is
Life insurance is an agreement: you pay regular premiums, and if you die while the policy is active, the insurer pays a lump sum to the people you name. That money is usually tax-friendly and can be spent on anything.
Who should think about it
Anyone with people who rely on their income or with debts that would pass to others. Single people with no dependants and no debts often need little or none.
The two big families
Term policies last for a fixed number of years and are inexpensive. Permanent policies, such as whole life, last for life and cost more because they include a savings feature.
The words you will meet
The death benefit is the payout. The premium is what you pay. The beneficiary is who receives the money. Underwriting is the insurer's review of your health and risk.
How to start
Work out your gap with the How Much Cover calculator, decide how long you need protection, then collect a few quotes.
A reminder
Always read the exclusions and keep your details up to date so a claim can be paid without delays.
General information only, not financial or insurance advice.