Term assurance offers you cover for a specified number of years. Because it is only for a fixed term, as opposed to the whole of your life, this makes it cheaper than conventional life insurance.

Some of the cheapest deals on offer at the moment come from new entrants such as Direct Line and Marks & Spencer. But the premiums quoted on term assurance policies can vary widely so it makes sense to get several quotes or consult an independent financial adviser.

With decreasing term insurance, the premiums get lower and lower as the amount you are covered for reduces with time.

Should you choose to, you can extend your policy or even convert it into a whole-of-life or endowment policy.