The prospect of insurance may seem daunting and is often a difficult subject to think about. However, policies can help give financial protection and security to family or loved ones when they need it.

Tesco Compare introduces customers to theidol.com, which compares life insurance, so they can pick and choose a policy. Below are typical types of cover:

Single or joint policies?

Policies can be taken out with either single or joint cover. A single policy would cover an individual only, while a joint policy would cover their partner as well. Joint policies usually pay out on the first insured person who dies.

Level Term Life Insurance

This type of policy involves a set amount of money that is paid out as a lump sum should the policyholder die within a specified fixed term. This amount does not change. If a claim is made and the sum assured is paid out, the policy ceases. Premiums must be paid in full and on time during the policy term in order for any claims to be paid. Applicants should be aware there is no investment element to these types of plans.

Decreasing Term Insurance / Mortgage Protection

This type of policy covers a standard repayment mortgage if the policyholder dies during the policy term. Decreasing term life insurance/mortgage cover reduces each year, roughly in line with a repayment mortgage. A cash lump sum can be paid to loved ones to help them pay off the mortgage if he or she dies during the cover term. Premiums must be paid in full and on time during the policy term in order for any claims to be paid. Applicants should be aware there is no investment element to these types of plans.

This policy can be set on either a single or joint basis. The cash lump sum will be paid out on the first claim only. For an increased premium critical illness can be added to cover most mortgage insurance policies.

Critical Illness Cover

This pays out a lump sum upon the diagnosis of a qualifying critical illness. Illnesses that qualify for a pay out will be specified by the policy provider. Illnesses covered can vary depending on the provider, and some insurers may no longer cover those such as breast cancer as survival rates are much higher due to advances in medical science over the last 10 years. Applicants, therefore, have the opportunity to check before taking out a policy that it will actually pay out on the ilnesses they’re looking to cover.