There are three main types of life insurance
Term: this is the most common form of life insurance. It pays out a lump sum if you die during the term of the policy.
Family Income Benefit: this scheme provides an income for your dependents rather than paying them a lump sum, if you die during the term of the policy. You should note that the income is only paid for the time remaining on the policy, so you will need to make additional arrangements to go on providing an income after the policy expires.
Whole-of-Life: this type of policy is designed to pay out at the time you die whenever that date should be. Therefore as long as you maintain the policy there is guarantee that on your death the sum assured will be paid to your Estate. Some policies require premiums to be paid right up until the point of death others have a maximum term for which premiums are payable.
Endowment: this is a savings plan with an element of life cover, so in the event of death before the end of the term the policy provides you with a lump sum, often known as the maturity value.
The premiums for policies vary according to your personal circumstances, such as your age and previous medical history.
Pension plans - personal or occupational - may include an element of insurance if you die before you reach the set retirement age on your pension. Often in the case of occupational pension schemes the cover is normally expressed as a multiple of salary. If your cover is arranged through an occupational pension scheme of your current employer, you should seriously consider starting a new policy to replace the cover if you leave your job.
This is especially important, as an interim measure, if your new employer only provides cover after you have completed a given period of time, for example a probation period.