Life assurance is designed to provide cover until the person who is covered passes away. This type of plan is designed with the idea that when the person dies, any outstanding debts would be paid off and your dependants would be financially stable. It can be more expensive than life insurance as it covers you for a longer term and pays a lump sum in the event of death, whenever that occurs. This type of cover provides a guaranteed pay out. The amount of cover will be dependant on the individuals requirements and circumstance i.e level of income, age, financial liabilities, dependants etc.