Life insurance is protection against financial loss resulting from death. It is an insurance company’s promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums.

Life insurance is the simplest, most popular and cost effective way to financially protect any dependants in the event of your death. The benefit of a lump sum, in most cases tax-free, will guarantee your family isn’t deprived of funds during an already stressful time.

The cost of life insurance is at an all time low and now is the perfect time to arrange for coverage. For those in good health, a policy that was taken out six years ago can be replaced today for significantly less, despite the fact that being older, one is in theory at greater risk. The industry over-reaction to the threat of AIDS initially caused premiums to rocket skywards, but when the expected epidemic failed to materialize, costs fell rapidly from the mid 1990s onwards. Life insurance premiums vary from person to person. Factors such as age, gender, current and previous health, term required, occupation and smoker status influence risk. Risk is assessed with the use of what’s known in the industry as ‘mortality tables’ to determine the premium for a particular individual.