Life Insurance pays a cash lump sum to your spouse, partner, family or your estate if you die. Within the life cover plans you can also include other options such as critical illness cover – this cover will payout a lump sum in the event of being diagnosed with a specified critical illness. This would payout the sum assured and repay the outstanding borrowing giving you peace of mind. An example of critical illnesses which the policies would payout on can be seen by clicking on the ? button when getting a quote. Please read the Key Facts Document issued by the provider for a full list of the critical illnesses included in their policies.

The policies will also pay out the sum assured if you become terminally ill. ( Most life insurance policies include Terminal Illness Insurance at no extra cost. In the event that the policyholder is diagnosed with a terminal illness (defined as where life expectancy is less than 12 months), then the insurer will agree to pay the amount of money insured on diagnosis rather than death. However, this benefit is not available during the last 18 months of the life insurance policy).

There are 2 main types of Life Insurance:

• Level Term Life Insurance - With level term life insurance, the sum assured is guaranteed and remains unchanged throughout the term of the policy. The sum assured will be paid out as a lump sum if you die, diagnosed with a terminal illness (see above) or if you are diagnosed with certain critical illnesses if included in the policy.
  
  
• Family Income Benefit - A life insurance policy that pays an income to dependants on the death of the policyholder or on diagnosis of a specified critical illness if included in the policy. The annual income is payable for the remainder of the policy term.