Life Insurance has come a long way from the days when the Ancient Babylonians received monetary compensation for the deaths of their slaves.

Nowadays the life insurance industry is a sophisticated business sensitive to the varying needs of the policyholder. There are numerous forms of policy available to suit people from all walks of life with specific concerns and requirements.

If you are looking for a standard form of life insurance to provide you with general cover then Term Life Insurance is ideal. With this type of policy the holder fixes the duration of the cover, which could be anything from a year to several decades, and the designated beneficiary receives the death benefit accrued from the regular premium payments should the policy holder die within the set period. If all goes well the policy will expire before the holder and thus become redundant.

Term Life policies can be useful if there is a specific schedule of payments that the policyholder is tied to, for example mortgage repayments. Decreasing Term policies reflect the diminishing instalments of such a form of repayment, as opposed to a Level Term policy where the sum remains constant throughout the policy's duration.

The Joint Life variant of the Term Life policy shifts the emphasis from one specific individual to the couple. In most cases it is hard, and unpleasant, to predict which partner will dir first. Joint Life policies guard against this by paying out the death benefit to whichever partner survives the other. This policy ensures that unexpected tragedy will not deprive either party of financial support.

It is also worth thinking about the rate of premiums paid over the course of the Term Life policy. Obviously as the holder ages the premiums increase in value but this can be combated in one of two ways. Firstly, the policy can be set up at a variable rate whereby the initial premiums will be of a lower amount to counteract this gradual rise. Or alternatively the holder can choose to keep the premiums fixed so that the total amount is spread evenly over the course of the policy. Whilst both options will cost the holder the same amount the method of payment can be important in terms of budgeting and cash flow.

But what if you require a more long-term policy? Whole Life Insurance does exactly what it says on the tin. The policyholder is covered for the duration of their entire life and is also able to determine the rate of interest themselves. The beneficiary then receives the death benefit after the policyholder's death. It is the enduring nature of this policy that has led to its establishment and popularity over the years; there are no headaches about time periods running out which offers great peace of mind to the holder and beneficiary alike.

And yet how many of us can truly say that we know what the future holds? Major life changes can happen at a moment's notice which is why many people choose to take out a Universal Life Insurance policy. The added bonus of this type of policy is its flexibility. Premiums can vary throughout the duration of the cover (as long as the policy's costs do not surpass its cash value) as can the final pay out, so if the holder's circumstances do change dramatically they have a policy that can adapt quickly and easily.

Alternatively if you are financially confident you could opt for Variable Universal Life Insurance. This policy would provide the holder with all of the advantages of a Universal Life policy but with the option to apportion premiums to a range of different investments. Therefore the cash value of the policy is not solely dependent on the chosen interest rate. This may sound risky but the potential rewards are substantial if the investments perform well.

These different forms of policy and their subdivisions may appear confusing and you may be anxious about misinformation or falling foul of disreputable firms. That is why the Financial Services Authority or FSA has been put in place. They are a regulatory body that govern the rules and codes of the Life Insurance industry and make sure all firms adhere to the law of best practice. This includes the maintenance of a database listing all accredited firms and the enforcement of the Initial Disclosure Document. This is a document that insurance intermediaries are legally obliged to give their clients and basically outlines their level of performance within their particular field.

In the unlikely event that the FSA cannot help you the Financial Ombudsman's Service can deal with complaints made against specific firms and the Financial Services Compensation Scheme is there to provide financial support to policyholder's whose firms cannot fulfil their commitments.

With these organisations there to help you navigate your way around the system it has never been easier to locate the policy that is right for you.