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If you are single with no one depending on your income, then you probably don’t need life insurance. If on the other hand you have a partner or family who may struggle to cope financially, then life insurance could offer the help they need at a very difficult time.

Term policies, the most common type of life insurance, only pay out if you die within the duration agreed in the policy. For example, if you take out a term life policy for 25 years, your family can claim if you die during this 25-year period. However, if you die after this term then there would be no pay-out.

This depends on the life insurance policy you buy. If you buy level term insurance, the pay-out is the same whether you die in year one or in the 25th year.

Decreasing term insurance is a cheaper option, because the pay-out gradually becomes smaller over the years. This type of decreasing level policy is often linked to repayment mortgages because the amount you owe the lender also decreases over time.

Family income benefit is another option. It pays an income much like a monthly salary rather than a lump sum from the time of the claim until the end of the term you agreed with the insurer. Family income benefit is even cheaper than level or decreasing term life insurance because the amount paid out by the insurer is expected to be less overall.

You’ll need to consider exactly what you want it for. Maybe you want to make sure the policy lasts as long as your mortgage repayments. Perhaps you want to link it to your children’s age, so it won’t expire until they have finished school, turned 18 or finished university.

Of course, your own age will have an impact on your decision.

Yes, it is called life assurance or whole-of-life insurance. Your family can claim for your policy no matter when you die, unrestricted by a policy term. Life assurance is normally more expensive than term insurance, as the insurer knows for sure that it will have to pay out eventually.

Your premium will vary depending on the type of policy, the size of the sum insured and also the risk of a claim – if you have a dangerous job, for example.

Also, age is a factor, so life insurance will be more expensive for an older person. Similarly, if a customer is in poor health, they can expect to pay a higher premium.

The insurer will take into account occupation, hobbies, lifestyle – such as whether you smoke, your weight and your fitness – to help determine their premiums.

Even postcodes are checked, as certain areas of the country are more likely to claim.

Critical illness cover is a common extra people add to their life insurance. It pays out a lump sum if you are diagnosed with a serious condition during the term of your policy. However, most policies only pay out once, so if you claim, your family would not be able to claim again on your death.

It makes sense to buy life insurance as young as possible as older people pay more for their premiums, so do it in your 20s and 30s rather than your 50s.

Improving your health by losing weight and giving up smoking will also significantly reduce your premiums. We can help you get a great deal on your life insurance in a matter of minutes.