The simplest and most affordable form of protection, you will receive a payout if you die within a predefined policy term. There are different types of term assurance available which pay out a fixed amount, decreasing, level or increasing.
Decreasing policies pay out a smaller amount as time passes meaning the longer you have the policy the smaller amount you will receive should you die within the term of the policy, typically people arrange for this to fall in line with their outstanding mortgage balance to ensure the mortgage is paid off should they die before the balance is cleared. A decreasing policy is typically cheaper than other forms of policy as the payout is potentially smaller.
Family income benefit plans offer a level or increasing monthly income to dependents. Most policies require you to be aged between 18 to 89 and the policy must end before you are 90 years old.
*figures above for level term, life-only (without critical illness cover) single person policies. (Source: MoneySuperMarket data July 2019 to June 2020.)