Provide your family with the protection they need.
Life Assurance goes beyond covering the basic costs of the death of a loved one and instead provides your family with an investment that lasts a lifetime. Death is inevitable, but it is possible to leave your loved ones with financial coverage and protection, giving them one less thing to worry about.
Life assurance is a policy that pays out to your family in the event of your death, regardless of when it should occur, in exchange for on-time monthly payments while you are living. It is an investment for your family’s future because rather than losing value over time, it maintains its value throughout your entire life and even includes an investment bonus that offers increasing value.
Anyone who wants to ensure the financial well-being of their family should consider some type of life insurance. By choosing assurance, you’re making sure that your family is always covered for the duration of your lifetime. Beyond simply offering coverage for funeral costs, you’re providing them with a legacy that will help them maintain their standard of living after you’re gone.
Anyone over the age of 18 can take out a life assurance policy. Most providers have an age limit after which you can no longer take out a plan -- this limit is typically 65-75 years old. Additionally, while medical issues will not bar you from taking out a life assurance policy, it will significantly increase the cost of your policy.
Each provider has slightly different eligibility requirements, but most dictate that:
Insurance is something that provides coverage in the case of an unforeseen event, such as an accident, medical illness, or sudden death. Assurance, on the other hand, provides coverage for an event that is bound to occur, or in other words, death.
Because of this difference in terminology, life insurance often refers to term insurance, whereas assurance often refers to whole life insurance. The former provides a policy payout if the insured person should die during a pre-specified term. However, once that term is over, the policy loses all of its value.
The latter, it provides a policy payout regardless of when the insured person dies. It does not lose value over time, and in fact, it often gains value. Even if the policy is cancelled at some point in time, it can often retain some of its value if the insured has put investment bonuses in place. However, there are penalties issues for those who want to cash out their life assurance policies early.
Monthly premiums vary greatly depending on the provider and the amount of coverage you’re looking for. It is possible to find whole life insurance policies with monthly payments as low as £50, or even a little less if you are young and healthy. As you age, the premiums can get up to the hundreds.
This depends on your provider. Some allow you to stop making payments as young as age 65, while others will continue requiring payments up to age 90.
You can choose how much coverage you would like in your policy. Of course, the more coverage you have, the higher your premiums will be. You can use our life assurance calculator for an instant estimate of your monthly premiums based on your coverage needs.
Yes, your family’s payout from your policy is not taxable. However, if you decide to withdraw your payout early, you will receive a penalty tax.
Your payout belongs to your beneficiary and can be used however he or she wants. The payouts are typically used to cover the costs of a funeral and any remaining debt that the insured carried. After that, any leftover money can be saved, invested, or used to make important purchases.
Yes, it is possible to cash out a life assurance policy before you die. Because the policy holds intrinsic value, you can still receive a payout. However, there are costs associated with the early termination of the policy. You may lose certain bonuses or guarantees, and you will suffer a tax liability on the amount withdrawn. There are typical penalties given on early withdrawals as well.
Pure Cover offers free, instant life assurance quotes. Simply input your information into our life assurance calculator to compare the costs of different providers today.