Woody Allen once said that "On the plus side, death is one of the few things that can be done as easily lying down."

Life insurance, otherwise known as life ‘assurance’, is meant to provide financial support after death. It is a grim subject but an important one that is about how your family and loved ones, or even business partners, will cope after the inevitable event of your death.

It is a grim subject but an important one that is about how your family and loved ones, or even business partners, will cope after the inevitable event of your death.

Taking out a life assurance policy is effectively buying a sum of money that will be paid out when you die. Depending on the policy this can be paid in one large lump sum or spread out over a series of payments. How the sum is paid and the cost of the premium varies from insurer to insurer.

Life insurance is often referred to as ‘assurance’ because sadly there is no question about it: you will die someday. ‘Insurance’ is about protecting yourself from something that might happen, but ‘assurance’ is about protecting yourself from something that will happen.

Most people in the U.K. go without any type of life insurance. Statistics from the Chest Heart Stroke Association however, show that most people end up needing it. There is a good chance you’ll experience a life threatening illness or injury before you turn 65, one which may decrease your ability to work, threaten your standard of living or kill you.
Some of the reasons you might want life insurance are: income replacement, funeral expenses, pay off debts, pay off medical bills and mortgage life insurance.

Life insurance, like any insurance, is based around the level of risk that the insurer will have to pay out. For life insurance, that means that if you suffer from any pre-existing serious medical conditions or are over a certain age and smoke then you’ll have to pay a higher premium because of your increased risk.

The cost of your life insurance is set by your personal circumstances and the level of cover and payout you ask for. The higher the payout the higher your premium will be and your age, gender and health will also affect the price.

There are many ways you can keep the costs of life insurance down without sacrificing the cover you need.

There are personal health actions you can take that are a good idea not only to lower the cost of your premium but to live a healthy lifestyle. Quit smoking as insurers will charge you more for the increased risk of disease caused by smoking. It is also a good idea to take up exercise to achieve a healthy weight.

When paying for your health insurance you should consider paying it all up front to avoid the interest from making repayments.

Finally, the best advice is to buy your policy as soon as possible. The younger and healthier you are the cheaper your policy will be. Don’t put it off.