There are 2 main types of life insurance:
Protection only or 'term insurance'. This pays out should you die within a set period of time This is the cheapest way to cover your finances for your family in the event of your death.
Investment type life insurance, this includes endowment policies and ' whole of life policies. Not only does it pay out if you die, these will build up in value which can be cashed in during your lifetime. Some pension schemes, such as personal pensions (including stakeholder schemes), also work as investment-type life insurance.
