Speaking precisely, a life insurance policy pays out on the event of the contract holders death, without regard for when this happens after the beginning of the policy. A term guarantee policy will be taken out over a fixed quantity of time, for example a decade, with the guarantee of a payout only if the policy holder dies inside that period. In taking a look at the differing kinds of life assurance, its useful to remind ourselves of the basic definition. This extra, investment part makes the entire life assurance policy a different creature and one that, given the latterly rather bad performance of that investment component, one which has attracted some amount of feedback.

With term life insurance, there's no investment part. The sum guaranteed stays unvaried from the start till the expiry of the insurance.

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