Life assurance is a policy that is provided by an insurance company and will pay out to your family either a lump sum or a series of smaller sums in the event of your death. Some offer a guaranteed payout whilst some will expire after a given time. Some have a set payout, whilst others offer more flexibility. The best way to cut the cost of your insurance is to compare life assurance and make sure that you do not settle for the first quote you are offered, but that you look around thoroughly first in order to get the best deal that is available for you. By simply accepting the cheapest quote you find you could be compromising on the level of cover you are receiving.

A Term life assurance policy offers you with basic cover over a set number of years. This type of policy requires that you make a regular payment and will pay a lump sum. If the policy does expire and the policyholder is still alive then there will not be any payment. Premiums will vary depending on various factors such as age, health and occupation.

Critical illness cover can cover debilitating conditions such as heart attack or stroke, cancer and the cover will then pay out a lump amount upon diagnosis of illness but will not contribute in anyway towards treatment. Always make sure that you are fully aware of the exact which conditions the policy covers so that you do not get a nasty shock.

Level Term assurance will help your family as it will pay a lump sum in the event of the holder's death during the term of the policy. The payout amount is assured and will remain unchanged throughout. No payout will be given should you outlive the term of your policy.

Decreasing Term assurance means that the amount that will be paid steadily decreases during the term of the policy. This type of policy is very often used to cover mortgages.

Whole-of-life assurance guarantees a lump sum should the policyholder die, whenever this is. As a payout is in effect guaranteed, this type of policy is more expensive than a basic term would be.

An Endowment life assurance policy is fundamentally life assurance attached to a savings scheme. They will pay out any accumulated returns at the end of the term, or before should the holder die during the term.

Family income benefit provides your family with a series of regular payments instead of all in one go. This type of policy is used to replace a lost salary.

The cost of policies that are offered by a life assurance company can vary considerably, and will depend on the type of policy, the length of the term, the flexibility that the policy has and how many people will be covered by the policy, and so make sure you compare life assurance policies thoroughly. An insurance company will use a mortality table to decide upon the cost of a policy for a particular individual, using criteria such as age, gender, occupation and smoker/non-smoker status as these are important factors. A loading will then be added which relates to your medical history and current lifestyle. Reports from your GP or in some cases a medical examination are often requested.