Life Insurance

Life Insurance
It covers you against the risk of death. This is ideal for a person who wants to leave a fixed amount of money behind after death, e.g. to pay an estate duty. It is the cheapest form of life cover and you can borrow against it, if you wish.
Universal life cover is the same as whole life cover, but it has an investment component. It does not guarantee a fixed rate of growth because it is influenced by the investments' performance; however the chance of rapid growth makes it a popular choice.
Term insurance
Term insurance is also known as fixed insurance, is a risk product. It is ideal if you need to provide life cover for a set period of time, for instance while paying off a housing bond. The cover simply expires after the agreed period of time.
Endowment policies
It is a savings plan in which you pay a monthly premium for a specified period of time, at the end of which you are paid out a lump sum. It is designed to pay you during your lifetime rather than your beneficiaries after your death.