Whilst life insurance isn’t something you benefit from during retirement, it helps ensure your family are protected and minimises the financial impact of your death. Therefore, it’s still important to consider life insurance if you haven’t already.

Life insurance pays out a sum of money on the passing of the insured person, or if they are diagnosed with a critical illness (if critical illness cover has been added or is included). You pay monthly premiums, which vary in cost depending on how much you want the sum to be.

The types of insurance are:

Decreasing term insurance, which is like level term insurance, however, the lump sum that would be paid is reduced each year. People generally have a policy like this to cover their mortgage payments.

Level term insurance, which pays out a fixed lump sum if you die during the term of the policy. The amount of cover is fixed so it does not change over the term. The amounts are set when you take out the policy.

Over 50s life insurance, which is a whole of life insurance policy for those who are aged 50 years and over. The premiums are fixed and you won’t need a medical or health check.

Whole of life insurance, also known as whole of life assurance, which pays out a fixed sum when you die. This differs from term insurance as there is no set term. It will cover you for the whole of your life if you keep up to date with your payments.

Funeral cover, i.e. a pre-paid funeral plan. Some cover the funeral director’s fee, while others may cover more elements of the day, such as the wake.