Life Insurance is often referred to as Term insurance. It is payable in the event of the insured’s death or terminal illness. It provides a lump sum to reduce or extinguish debt and/or provide an income to maintain the family’s lifestyle.
Terminal Illness is payable, in many products in the market, when the insured is diagnosed with less than 12 months to live. This allows the person to settle their affairs and ensure their family has no financial worries on their death.
What is the correct sum insured will depend on your personal circumstances.