01: Introduction

Once you have chosen on whose life the policy should be taken out, how much money is needed and when and the best way to ensure that the right person or people get the money, you can then consider which type of life insurance policy to have.

At first sight, this looks very complex but, like choosing a home or car, it is simpler if you understand the basic types. When it comes to life insurance, there are three main types:

• Term insurance This pays if you die only during the term of the policy.
• Whole of life insurance This pays whenever you die.
• Endowment insurance This pays if you die during the term of the policy or at the end.

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