In exchange for regular premiums, a life insurance company will insure your life so that when you die, policy should pay out to protect your dependants from extra pain of financial hardship.

This is particularly important when buying a house, or when you or your family takes on a large, long-term financial commitment. In event of death, for example, payment from a life insurance policy can be used to pay off a mortgage.

Policies can be arranged on either a single or joint life basis. Depending on type of policy you choose, your insurer will pay either a lump sum or a regular income which you could use towards meeting any outstanding debts and trying to ensure your family is able to maintain its standard of living.

How much they receive depends upon 'guaranteed sum assured', amount for which your life is insured.

Many people first come across life insurance when they take out a mortgage, as lenders often insist on it to make sure loan is repaid if you should die still owing them money.

However in some circumstances, only having enough life insurance to repay mortgage is insufficient to fully protect dependants. If you have a partner who would suffer financially if you were to die or if you have young children who depend on you, then life insurance is very important.

Life insurance is, as name implies, an insurance policy taken out on an individual's life. As with any other insurance policy, regular premiums are paid by policyholder to insurance company - and should policyholder die, then policy will pay out either a lump sum or a regular income.

People think about future more now than ever before. We want a good standard of living not just now but also as we grow older and this is why financial services industry has become more important.

The most obvious reason for a life insurance policy is to provide financial protection for family and loved ones, should you die unexpectedly. However, there are a number of different circumstances in which life insurance is an important factor to consider, such as protecting your mortgage, your estate or your business.

Upon death of policyholder, a life insurance contract provides a one-off lump sum payment - particularly important if either you or your family take on a big loan, any long-term financial commitment, or purchase a house. For example, if policyholder does die payment from a life insurance deal could be used to pay off a mortgage.

Life Insurance is particularly valuable if taken out at a younger age, due to fact that it will cost much less. It will help you to protect your family against any financial difficulties that may arise from your death. It can replace lost income, provide a lump sum towards funeral costs, pay off an outstanding loan or credit card.