Jargon Buster - Definition of Life Insurance

Please select your letter of choice below to see the list of terms:

Life Insurance

is an insurance policy that pays out a sum of money in the event of the death of the life assured. It can usually be set to pay out a lump sum of money or a monthly/annual income.

There are different types of Life Insurance that work in different ways, some examples are:

  • Level Cover
  • Decreasing or Mortgage Cover
  • Family Income Benefit
  • Renewable Term
  • Convertible Term
  • Whole of Life


By default Life Insurance pays a claim to you estate or to a second plan holder. This can and often should be changed by writing the policy into trust for you own nominated beneficiaries.

See Also:


Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.

If you are in doubt of the meaning of any terms, why not email us on info@topquoteuk.com

The Financial Conduct Authority does not regulate trusts.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.