If you have dependants who rely on your income or a family living in a house with a mortgage that you pay – a life insurance policy can provide for them if you die. On payment of a regular premium, the insurance company will pay lump sum or a regular monthly payment to your dependants if you die. Term life insurance policies run for a fixed period of time – such as (5, 10, 25 years or longer). These kinds of policies only pay out if you die during the term of the policy, provided you have maintained your premium payment. It is not expensive and easily affordable.A whole-of-life policy will pay out no matter when you die, as long as you keep up with your premium payments.