Life insurance from Top UK Insurers

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.

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.
• 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.
• 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), but these come with their own specific conditions.

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

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.

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.

Ideally, as soon as possible - but this is often unrealistic. Normally it is best to take out life insurance cover when you're about to embark on a large financial commitment or risky activity. Buying a house, having a child or even starting a new, risker job are ideal times to purchase a plan.

Just note that insuring your life isn't like insuring your car or home - it takes time to be thoroughly underwritten. If you need the life insurance in 6 months' time, it's well worth starting it now, in order for you to be fully covered then.

Yes. Some life insurance providers will bundle in a few incentives for you to go with their cover option. These can range from Parker Pens, to shopping vouchers and even high-end tech products such as iPads.

Although these are great extras to receive, you need to be conscious of paying a higher premium for the luxury of a 'free gift'. Some insurers build the cost of these extras into their monthly costs, and you can end up paying more in the long term because of it.