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Term insurance

This is the simplest and cheapest type of life insurance, and is known as term insurance because you choose how long you're covered for, say, 10, 15, or 20 years (the term).

Term insurance only pays out if you die within the term you've agreed. If you live longer than the term, you get nothing. As a couple, you can also take out term cover in both your names, with the policy paying out if either of you die during the term.

Whole-of-life insurance

Whole-of-life insurance pays out an agreed sum when you die.

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How to shop around for life insurance

Whether you're buying investment-type life insurance or term insurance it's worth shopping around. Key points to consider include:

There may also be other factors to take into account, depending on the type of insurance you're buying.

Documents to help you shop around

Insurance companies or brokers selling life insurance are regulated by the FSA. Under FSA rules they must provide you with key policy information which sets out the essential facts about the product to help you shop around.

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How to check if a firm is FSA authorised

You can check whether a firm or individual is FSA authorised by using the FSA online 'Check our Register' service.

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The difference between information and advice

You can buy insurance after getting advice, or based on information only after shopping around. Read our related article to understand the difference between buying with or without advice and the relative pros and cons.

• Getting advice on insurance products

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