There is a wide range of UK life insurance cover on offer, but it is all designed to do one of two things: replace lost income or provide a capital sum on the death of the policyholder.

Life insurance UK cover makes the death of the policyholder less difficult for those left behind. But it is estimated that 32 per cent of adults in the UK have no life insurance cover, and a further 27 per cent believe that they have inadequate life insurance cover.

The most common policies are unit-linked, where your premiums are paid into an investment reserve from which a proportion is taken monthly to pay for your UK life insurance cover. Make sure you specify the one you wnat when you come to get your life insurance quote.

There are two kinds of unit-linked policy: Maximum Cover and Standard Cover. Maximum Cover offers a high level of cover for a low premium, but for a set period (say 10 years). At the end of that time the plan will be reviewed, and the premium could increase substantially. Standard Cover is designed so that future premium increases should be met from the investment reserve.

Endowments are also a kind of UK life insurance cover. An endowment consists of two parts packaged together - a savings plan plus life insurance cover. There are two main types of endowment. A with-profits endowment means that your premiums are pooled with funds from other investors. At the end of the year, the life insurance company will allocate bonuses to all the investors. Once awarded, these cannot be taken away.

A unit-linked endowment buys specific units in stock market-linked investments, which go up and down in value. Unit-linked funds have the potential for greater and faster growth than with-profits endowments. However, there is also a greater risk that the unit-linked UK life insurance policy may not produce such a good return as a with-profits policy. For higher earners, a Maximum Investment Plan (MIP) may be appropriate. This is a 10-year endowment policy that grants certain tax breaks to policyholders.

Make sure you keep your savings and life insurance separate. Before you buy, check how much life insurance cover you already have through existing policies Consider a family income benefit policy if you have a young family, and shop around for alternative life insurance cover, even if you already have cover.

Also remember that cheap life insurance does not necessarily mean the best life insurance cover.