Quite simply life insurance protects your loved ones from the consequences of your death or terminal illness by paying out a lump sum of your choosing. You can set your life insurance up to pay out as little as £1000, or as much as £1,000,000! It all depends on what's right for you and your family.
Life insurance is commonly used to protect a mortgage. A 'mortgage protection' policy is set up to ensure if ever the worse did happen, your mortgage is paid off and your family don't lose their home. Along with this life insurance can also be used simply to provide a lump sum for the family to live off, or cover funeral expenses and other costs relating to death.
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