Life insurance cover

Life Insurance Cover is a contract between an insurance company and an individual or individuals, where payment by the insurance company in return for premiums paid depends in on the length of a human life or lives.

The sum payable under a life policy is called the ‘sum assured’, and this will become payable either upon the death of the ‘life assured’ or his survival to the end of an agreed period.

The amount of premium you will pay will depend on the type of cover you want and your age, sex, state of health and occupation at the time you take out the policy, as well as any other factors that may affect the underwriting of the life insurance policy.

There are three main types of life insurance cover – term assurance, whole life and endowment assurance.

Term assurance is the cheapest form of life insurance. It is used as a means of insuring against the possibility of death within a specific period.