Life assurance and insurance – how do they work?
These two products are similar as they’re both designed to pay out a sum of money in the event of your death. The difference is there’s not always a guarantee of a pay-out with life insurance if you live longer than the term of the policy. There are also other differences that we’ll cover below.
With life insurance, you tend to pay premiums for a set period of time, and a pay-out’s only made if you die during that time. So, if you live longer than the policy’s term, you don’t get anything. Sometimes policies are linked to mortgages and other financial debts and will pay them off if you die. Premiums can get lower over time as the debt decreases with these policies, depending on what’s being paid off.
Should I choose ‘insurance’ or ‘assurance’?
This depends on your individual needs and family circumstances. Your age, whether you’ve got anything left on your mortgage, your current and future expenses, and the amount you’d like to leave to your family all need to be considered to see which type of cover you need.
How much will it cost?
Regardless of which type of policy you decide on, you’ll usually be asked to provide information about your health and lifestyle. Insurers like to assess the level of risk you present based on these details. Premium costs also depend on your age and the level of cover you want. Some policies will have premiums that go up as you get older, while others will stay the same.
To find out if life insurance or life assurance is right for your needs, the easiest way is to use the pop-up form on the right-hand side of this page. Of course, you can call or email us too. Just use 01244 470 107 or: firstname.lastname@example.org.
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