Very few of us want to think about death, least not to talk about it with our families and loved ones. However, it is a certainty that we will die one day. If this is unexpected due to an accident or as the result of a serious illness, those left behind could face an uncertain financial future.  

That's why some people chose to take out life cover so that in the event of you passing away your family will gain some financial security. It can ensure your family have enough to pay for certain expenses – whether they may be funeral costs, mortgage payments or general living expenses. You pay a monthly premium for life insurance.

Your age, health, lifestyle and how much cover you need, as well as the type of policy you have, will determine how much you pay.

Types of life insurance

Life insurance policies offer several different types of pay out:

• Level term: A level term life insurance policy pays out a fixed sum when you pass away, and the amount stays the same throughout the term

• Decreasing term: Decreasing term life insurance pays out less as time goes on, usually because it’s taken to cover an existing debt – that’s why it’s sometimes called mortgage life insurance

They may also offer a family income benefit policy. This pays out a set amount each month to your beneficiaries – starting from when the claim is made and ending when the policy term finishes.

Family income benefit policies

Family income benefit insurance is a type of decreasing term policy. Instead of a lump sum, it pays out a regular monthly income to your beneficiaries until the policy's expiry date if you die. Find out more in our expert guide to family income benefit insurance explained.

Whole-of-life policies

As the name suggests, whole-of-life policies are ongoing policies that pay out when you die, whenever that is. Because it's a certainty that you'll die, these policies are more expensive than term assurance policies, which only pay out if you die within a known timeframe.

How to find the best deal?

It's not just banks, building societies and insurers that sell life insurance nowadays. High street retailers and supermarkets are also worth considering. Quite often, one company sells another company's life insurance policies - for example, Nationwide Building Society sells Legal & General life insurance policies, while Virgin Money sells Friends Provident policies.

The price you'll pay will vary depending on where you buy it, even where the underlying product is identical and provided by the same insurer. A word of warning here - getting cheap life insurance doesn't necessarily mean you'll be getting good cover tailored to your circumstances. Speaking to a professional financial adviser about your life insurance needs can help ensure you find the right policy and the right level of cover.

Online life insurance brokers

Online insurance brokers may be able to offer cheaper prices as they pay back to you some or all of the commission they receive from insurers. In the latter case, the company rebates you all the commission throughout the term, reducing the ongoing premium.

It is worth checking the overall cost of both options. 

Price comparison sites

One way to compare different life insurance providers is to use a price comparison website like Moneysupermarket.com, Comparethemarket.com or Confused.com.

Make sure you visit a selection of sites. No one website covers the whole market; the same insurer may offer a better deal through one comparison site than through others.

Remember also, that the prices you see on a comparison site may not be the price offered when you apply for life insurance. It could change after your full medical history is taken and an assessment is completed.