What is Life Insurance?

Life Insurance (also known as Life Assurance) is a policy that pays out either a series of payments or a lump sum when you die. This type of policy can generally be divided into two categories: Protection policies, which are designed to provide a lump sum in the event of your death, and Investment policies, which help you to save by providing a lump sum after a certain number of years. Some policies offer both.

Monthly premiums (or an annual sum) are paid to the Life Insurance company for either a given time span, or through to death. These policies can be combined with other forms of insurance, such as Critical Illness insurance. This will provide you with a lump sum if you are diagnosed with a specified critical illness or on death.