Quite simply life insurance protects your loved ones from the consequences of your death or terminal illness by paying out a lump sum of your choosing. You can set your life insurance up to pay out aslittle as £1000, or as much as £1,000,000! It all depends on what's right for you and your family. Life insurance is commonly used to protect a mortgage. A 'mortgage protection' policy is set up to ensure if ever the worse did happen, your mortgage is paid off and your family don't lose their home.
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