The policy will pay out if the policy holder dies within a set period of time.
When taking out the policy a set term (for example 10-25 years) and an amount of cover is selected and these will stay the same until either a claim is made or the policy ends.
The level of cover required will vary from person to person. It will be dependent on the debts that need repaying and if you wish to leave a lump sum for your dependents living costs.
A financial adviser will be able to go through all of this with you to ensure you have the right level of cover in place.
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