Life insurance is a type of insurance policy that pays out a lump sum of money to your family & dependents in the event of your death.

Life insurance is one of the most generous things you'll ever purchase. By purchasing a life plan, you can make sure that the people you love the most are well looked after should the worst happen.

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Read more about critical illness life insurance >

Read more about income protection life insurance >

There are three main types of life insurance cover - these are:

Level term insurance policies pay out if you die within a fixed timeframe which you choose up front. Premiums and pay-out stay the same, regardless of whether you die on the first day, or the last day of the policy.

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Whole of life policies guarantee to pay out regardless of when you die – with no fixed time limit. These are normally more expensive, but you can get lower monthly costs by taking out an Over-50s policy.

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Decreasing term insurance policies are usually aimed at covering the remaining debt on a repayment mortgage if you die. These policies usually have a set timeframe and the pay-out decreases over the policy term – usually in line with the remaining mortgage debt. There are other tailored life insurance plans (such as Critical Illness Cover, Income Protection and Mortgage Protection).

This really depends on your own specific circumstances, but the average UK monthly life insurance cost is roughly £8.50 (but can be as little as £5 per month). The factors that have an impact on your life insurance costs include:

Age: Usually, life insurance rates increase as you age. If you are already over 50.

Health: Do you smoke? Any chronic conditions? These could have an effect on the cost of your life insurance.

Read more about critical illness insurance here >

Gender: Statistically, women live longer - and pay lower life insurance because of it.

Occupation: Some jobs require more health risks - if you're a sky diving instructor, you will most likely be paying more on life insurance than the typical office worker.

Examination: A thorough medical checkup will let the insurer know if you're low risk - meaning your monthly payments will be lower.

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Income protection insurance will pay you a proportion of your income if you are unable to work due to sickness or injury. This will help if you are the sole breadwinner and would hit financially instability if you were no longer able to work.

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Income protection will make up a proportion of your income however if you specifically want to receive a lump sum if you are diagnosed with a critical illness

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If you are the sole breadwinner in your family, and have multiple dependents, Income Protection could be a great way to keep your family from financial issues if you were no longer able to work.

Click here if you also wish to enquire about critical illness life insurance to receive a lump sum if you are diagnosed >

Again, this is largely dependent on the type of life insurance policy you decide to take out. The average life insurance payout is roughly £51,000, but with certain providers, this average raises to over £115,000.

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However, these averages are basic indications on how much your dependents would receive in the case of your death. Unfortunately, there is no sure fire way to know how much would be paid out, and your best bet is to get a free quote and see for yourself.

This depends on which life insurance provider you end up choosing. Some of the policies we recommend come with free gifts such as;

• iPads
• Apple Watches
• £50 - £75 Amazon, M&S or Argos Gift Cards
• Parker pens
• Fitness trackers
• Discount gym memberships
• ...and many more

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