Insurance is a contract between you and an insurance company where you agree to pay small amounts of money on a regular basis (called a premium) and in exchange for this, you will receive compensation in the form of either a large lump sum payment,
or in instalments over a set period of time, once a set event is triggered that is listed in your contract.
There are 4 main types of insurance contracts that are available relate to insure a human life.
There are other types of insurance contracts available but these are usually for non-human life, for example your car, a business, your house and your home contents. We discuss the insurance for human life further down the page.