|About Life Insurance and Life Assurance It's Not The Same|
About Life Insurance and Life Assurance
The common people in the road assumes that Life Insurance and Life Assurance are names for the equal structure of insurance. How wrong they are! But don't hang your head in shame, many financial commentators get it incorrect too! Life Insurance and Life Assurance function special financial roles and are poles aside in fee - so it helps to surf for the right product.
Life Insurance affords you with insurance plan cover for a particular duration of time (known as the policy’s “term”. Then, if you have been to die while the policy is in force, the insurance plan company will pay out a tax-free sum.
If you survive to the end of the term, the coverage is completed and has no residual cost whatsoever. It solely has a cost if there is a declaration – in that context it’s simply like your car insurance!
Life Assurance is different. It is a hybrid combination of funding and insurance. A Life Assurance policy can pay out a sum equal to the greater of either an assured minimum underwritten by way of the policy's insurance provisions or its funding valuation.
The value of the funding factor is then reliant on the Insurance Company’s investment overall performance and length of time you have been paying the premiums.