Life insurance isn't as simple as you think. There are actually a few types of insurance that come under the 'life insurance' banner.

This can be confusing when you're trying to decide which cover you need to protect you and your family and how much cover you need.

What are the different types of Life Insurance?

Life Insurance: Put simply (although it depends on the type of cover) life insurance means your insurance company will pay an agreed amount of money to your beneficiary should you die, become critically ill or permanently disabled. Before you apply for life insurance you need to work out how much money your family would need if you were unable to provide for them

Income Protection Insurance: This type of life insurance protects you and your family if you are injured or become ill and are unable to work or to pay your bills. By helping to pay your bills while you are sick and injured your family can maintain a level of financial security and can focus on your recovery

Funeral Insurance: A funeral will cost in excess of $5000 and money is the last thing you want your family doing if you've passed away is worry about where they will find the money to pay for your funeral. If you take out funeral insurance, which is usually not a lot of money, you can be assured that your family needed worry about how where the money for your funeral will come from.

Accidental Injury Insurance: If you had an accident could you afford to take a break to recuperate? Would you be able to hire someone to help around the house if something happened to you? Accidental Injury Insurance protects you against accidents and can pay out a lump sum in case you are injured.

Recovery Insurance: If you have a serious illness or injury this type of life insurance - Recovery and/or trauma insurance - will pay a set lump sum to help cover your medical expenses, loss of income, mortgage payments – anything you need while you are recuperating.

Total & Permanent Disablement Insurance: Imagine the huge toll on your family – emotionally and financially – if you suddenly required around-the-clock care. If you have an illness or injury that leaves you totally and permanently disabled, Total and Permanent Disability insurance benefits can pay off your debts, pay your medical expenses and fund any permanent lifestyle changes that occur as a result of your disablement.