This is the simplest form of policy available and its cost usually reflects this by being relatively low.
It offers you basic cover for a set number of years.
If you're considering this type of policy you should know:
The cost of premiums for term life insurance generally varies from person to person.
The price you'll be quoted will depend on your age, health and sometimes your occupation.
As with all policies it's crucial you keep up the premium payments to keep cover in place.
Many term assurance policies now also offer the option for you to pay an extra premium and receive a payout in the event of being diagnosed with a critical illness.
As long as the policy is used for personal rather than business use, the payout from the insurance company will be tax-free. If the policy is used for business purposes, although not certainly, there may be a tax charge on the proceeds received.