How does life insurance work? (continued)

Life insurance does not pay out a lump sum in the event of you falling unexpectedly and seriously unwell - if you are looking for a policy that will cover this possibility you should look more in to critical illness insurance. If being off work due to an accident or illness would cause you financial concern, you should also research income protection plans.

If you're interested in researching life insurance further you should speak to an independent financial adviser. Alternatively, you can use our interactive online research tool, the Finance Navigator. Based on the answers you give to a number of targeted questions, the Finance Navigator will help you to establish your own life insurance needs. It will then produce a bespoke guidance report for you to read through to help you make an informed decision. It will also allow you to learn more about some of the most commonly used life insurance plans.

Once you have your report, you can then use our online quotation system to find some of the most competitively priced life insurance plans from a selection of major UK life insurance providers. Once you have found the right plan for you, use our 'apply online' facility.

Next: Who should the money go to?