Life insurance is a policy that can pay out to your family or beneficiaries if you die during your cover period (also known as the policy term).

This can offer you peace of mind that your loved ones are financially supported when you're no longer around.

You can choose from a number of different life insurance policies that suit your requirements, budget and personal circumstances.

Having a life insurance policy is not a legal requirement, but it can be an important consideration if you want to ensure financial support for your loved ones.

Major life events are a good time to assess whether you should consider life insurance. Common reasons that prompt a discussion over life insurance include:

• Having children: A life insurance policy can help ensure your young family is financially protected should the worst happen.

• Buying a new home: It's one of life's biggest financial commitments, and you may share the cost with family or friends. A life insurance payout might be able to cover your future payments or pay off the remaining balance entirely.

• Getting married: If you and your partner share various joint financial responsibilities, a life insurance policy can protect your other half.

It's a common misconception, but life insurance is just as important for a main household earner as it is for a stay-at-home parent, for example. Both roles hold a great degree of financial value, so a life insurance policy can help cover the loss of either contribution.

Even if you're single, life insurance can still be worth considering. You may want to leave behind a financial gift in the form of inheritance or pay for other costs, such as your funeral.

There are several different types of life insurance policies, each having their own key features. This is why it's important to understand the benefits of each and which may suit your requirements best.

Life insurance can cost as little as £3.50 per month*, but what you pay is calculated based on a range of personal circumstances.

Because of this, life insurance premiums can vary quite a bit, with the following factors determining exactly what you pay:

• The type of policy you choose: Some life insurance policies cost more than others, especially if they have additional benefits. The term of your policy and chosen insured sum also impact the cost of your premium.

• Your health: Policies, such as whole-of-life insurance, may require you to complete a medical questionnaire during your application. Any pre-existing medical conditions you may have, along with your family history, can be used to determine your premium.

• Your age: Generally, the older you are, the more expensive a life insurance policy is likely to be. This is because there is a greater risk of developing a health condition or dying as you get older.

• Your lifestyle: Your smoking status, weekly consumption of alcohol and occupation all impact what you pay for life insurance. Essentially, the greater the risk of developing a health issue, the more you're likely to pay.

To see what you might pay for life insurance, you can find out by getting a quote in minutes.

Choosing your cover amount can seem like guesswork. But assessing what you need from a life insurance policy can be easier to calculate by considering a few factors, such as:

• If you have any outstanding debts

• Future costs you want to pay for

• What financial support you want to offer your family or dependants

As a rule of thumb, the greater your cover amount, the more you're likely to pay for life insurance. It's important to accurately estimate what you need; choosing a higher cover amount than you actually need may mean that you end up paying more than necessary. However, underestimating your insured sum can leave you short and may not cover your outstanding debts.

If you're looking for a starting point in calculating your cover amount, you can try a life insurance calculator to work out what you need. This can help you work out what costs you'd like to cover and the amount of money you wish to leave behind, offering you a suggested insured sum.

Yes, you can still buy life insurance if you have a pre-existing health condition. Insurers typically define this as a disease, injury or illness that you have previously experienced or are currently suffering from. Each insurer is likely to have their own list of what they define as a pre-existing condition; common examples include:

• Diabetes

• High blood pressure

• Asthma

• Heart conditions

• Cancer

A pre-existing condition is different from a health issue you develop while you already have a life insurance policy in place. If you develop one of the listed conditions above, you may be able to claim for treatment if it isn't excluded from your cover. However, you may not be able to claim for a pre-existing condition if you suffered from it prior to or at the moment you bought life insurance.