Life insurance explained
Life insurance is a financial product that, in return for contributing a regular payment, will pay out a large sum if you die.
Life insurance policies, sometimes referred to as life assurance, can also be used as a method of saving - where if, at the end of the period of cover, the person insured is still alive, the policy pays out regardless.
Life insurance polices are generally taken out by people with financial commitments and family members dependent on the money they earn.
For example if a person's wages contributes to the mortgage on their family home, taking out life insurance could cover the value of the mortgage if that person dies.
The cost of life insurance policies depends on how healthy a person is. As such stopping smoking, taking up exercise, and weighing the correct amount for your body size will all reduce the cost of a policy.
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