A term life insurance policy is the most basic form of life insurance and is often an inexpensive way to insure your life. It covers you for a fixed period and pays out a one-off lump sum if the unspeakable happens during the policy term. With some term insurance policies, you can add additional options, for instance, critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you pass away during the term of the policy.