I want to receive a lump sum if I die or become very seriously ill and could not work again - what sort of insurance do I need?

You need Life Insurance and Critical Illness Insurance. It will probably be cheapest to buy both types of insurance on one insurance policy.

Life Insurance pays out a tax-free lump sum if you die during the term of the policy. People get this type of insurance to cover debts, pay off the mortgage, and to leave an inheritance to their loved ones.

Critical illness insurance pays out a tax-free lump sum if you are diagnosed with a serious illness from which you survive for more than 28 days. This can include blindness and deafness and other conditions that don't necessarily affect your life expectancy, but do stop you from working.

For more information about life insurance and critical illness insurance, have a look at our FAQ Index.