Life Insurance is a form of insurance that could pay a lump sum to your family if you die, provided of course that you have taken out a life policy. They can use this lump sum to pay off bills or the mortgage, and it could give them an income when they need it most.
Income protection provides you with a replacement income if you cannot work as a result of an illness or injury after a period of time. You can take out income insurance if you are in full-time work or are self-employed and earn an income. Income protection will not be paid if you become unemployed.
Mortgage Life Insurance, commonly known as Mortgage Protection, ensures that your mortgage will be paid off if you die during the term of your plan. Most banks will require that you have mortgage protection in place prior to granting you a mortgage. This plan pays out a cash lump sum if you die during ther term of your plan.