There are two main types of life insurance policy. Term Insurance pays out a sum if the holder dies during the fixed period of the policy. Life Assurance also offers a lump sum payout to dependents should the policy holder die during the period of the policy, but if he/she survives that period then he/she will receive the payment. Life Assurance is also seen as an important investment option. The payments for Life Assurance are greater than Term Insurance.