Life insurance protects your family and any dependents following your death. The specific terms and conditions of your policy will dictate exactly what the insurance covers, and so it is of great importance that you familiarise yourself with your policy before you sign an insurance contract, by reading the contract carefully. You should find out exactly what is covered and what is not covered by your insurance company, see Covered / Not Covered, as well as deciding on the level of cover that you require, see Cover Required.
Generally, life insurance policies will pay money to your family if you die or if you are diagnosed with a terminal illness. If you would like to be covered for critical illnesses, you will usually have to take out a separate insurance policy, see Critical Illness Cover. It is a good idea to ask your insurance provider to explain the circumstances in which you are covered as fully as possible. However unlikely you may think it is, it is important to ask whether you would be insured if you died in a terrorist attack, in a natural disaster, see Unusual Circumstances, by accident or after taking your own life.
Only when you have all the facts can you be certain that the life insurance policy you have been offered will provide you with the best cover, and can tell your family what to expect in the event of your death. If you need help finding the correct policy, ask your insurance provider and an independent advisor for assistance: the more information you gather, the better the chance that you will choose the best policy for you, see also Getting Advice.
