Essentially, life insurance provides cover for the duration of your life insurance contract. Unlike other insurances, the life of the contract can be until your death or for a fixed period such as 20 years, for example.
That’s not to say that you are tied into your contact for 20 years. You can usually cancel after a minimum term. However, the insurer is agreeing to keep your premiums, that is your annual/monthly cost, the same during the contract term.
Fundamentally, you choose the amount of cover you require and how you want it paid out. For example, you could choose a figure of £200,000 as your cover. This means, upon your death or terminal diagnosis, the insurance company would pay out £200,000 to your loved ones.
Of course, like all insurance, policies do vary and choosing your coverage can be tricky, so let’s get into more detail.