What is and what is not covered?

In terms of what it covers, life insurance is the most straightforward of all the types of insurance you can buy. Provided that you are still paying your premiums at the time of your death, life insurance will pay out. How much depends on the amount your life is insured for and the type of policy.

Life insurance may not pay out if you did not tell the truth (i.e. disclose all material facts) on your application form. The policy may also state that no payment will be made if you commit suicide within a specified period (typically one year) after taking out the policy.There may well be other exclusions such as drug related deaths - read the small print!