Of the many key events in life serious illness or death has a huge impact on your family and loved ones. While such events are unavoidable you can plan for the future of those you care for by making financial provisions through insurance. The main types of policy are Life, Critical Illness and Accident insurance.

Obviously the cost of life insurance cover depends on your age. Insurers use Actuarial Tables to determine the cost of your cover. These tables use historical population data to help predict the likelihood of death and then price insurance accordingly.

There are two types of life insurance:
TERM LIFE - This is the most cost-effective insurance to get. You purchase cover for a period of time known as the Term which is typically between 5 and 25 years. This helps with financial planning so a lump sum can be paid to cover school fees or spouse retirement. There is no cash value to a Term Life policy.
WHOLE OF LIFE – This type cover guarantees to pay out on death. The insurance company is committed to pay the Sum Assured irrespective of when death occurs. This type of cover is more expensive than Term Life because there will always be a payout. The good news is that the policy has a value and can be cancelled and a lump sum paid.

As the name suggests Critical Illness cover provides a cash sum if the insured person has a serious illness. It can also be linked to employment in that money is provided in lieu of a salary. Most people will succumb to a serious industry at some stage in life so taking steps to reduce the impact of such an event is prudent for everyone.

Accident cover is often offered with travel products and can be included in the cost of flights and sometimes included with a credit card. Payouts for accidents include loss of fingers through to limbs, blindness and deadness with each incident triggering a percentage payment of the total sum assured.