There are two types of life insurance, as well as some variations you could consider. They both aim to pay out a lump sum when you die during the policy length:
Level – this type of policy is designed to pay out the amount you chose to cover, no matter when you died during the policy length.
Decreasing – this is a policy where the amount that would be paid out gradually goes down as the policy continues. It’s designed to work alongside a repayment mortgage, so the amount of payout goes down roughly in line with your shrinking mortgage debt.
There are lots of other choices you can make about your life insurance policy before taking it out. Like how long you want the policy to run for (the ‘Length’) and how much you want it to pay out (the ‘Amount of cover’). Different providers also offer different options on the basic package, such as indexation options. You can find a list of the most common ones at 'What are the cover options?' tab above.