Quite often you hear 'it could never happen to me' or 'I'll sort it out later'. Well the old maxim of "failing to plan is planning to fail" is no better suited to the ignoring of crucial decisions on protection.

A plan that gives you cover for your entire life. When you die, a lump sum can be used to pay off debts that will not be repaid during your lifetime or to pay an inheritance tax liability. In a majority of cases, it is a more expensive option than term assurance simply because the life assurance firm knows that it must pay out at some point in the future.

In addition, many plans also offer an investment component which means that your premiums are invested during the lifetime of the policy. They also include a withdrawal clause that allows you to cancel the plan and receive a cash surrender value. Hence, both of these options build up a cash value which you can withdraw or borrow against.