Life Assurance

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.

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What is Life Assurance?

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.

Is Life Assurance right for me?

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.

Who can be covered by Life Assurance?

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.

What are the eligibility requirements for Life Assurance quote?

Each provider has slightly different eligibility requirements, but most dictate that:

  • You must be 18 years of age or older.
  • You must be under 85, but many providers require you to be under 75, 70, or 65.
  • You have to be a UK citizen or permanent resident.
  • You cannot have a terminal illness.

Life Insurance and Assurance Comparison

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.

Pros of Life Assurance policies

  • It lasts a lifetime. While life and other forms of insurances only last a pre-specified period of time, life assurance gives you and your family lifetime protection. As long as you continue making payments, you never have to worry about losing your coverage.
  • It’s an investment. Term life insurance loses value over time until it’s eventually worth nothing. There as assurance policies, or whole life policies, maintains its value for life. Taking assurance policy also offers the ability to add investment bonuses so that the value of your policy actually increases over time.
  • Your lifelong dependents are always covered. For families with a lifelong dependent, such as a child who won’t be able to financially support themselves in adulthood, a spouse who stays home with the children, or a family member with a disability, whole life insurance is a must in order to guarantee that these dependents will continue receiving financial support after you’re gone.
  • Leave your family a tax-free gift. Even if you don’t have a lifelong dependent, it is a great way to leave your family with a legacy once you’re gone. No amount of money can make up for the loss of a loved one, but easing financial burdens can help family members through the grieving process.

Cons of Life Assurance policy

  • It’s more expensive. Because life assurance policy maintains its value throughout your life and a claim is inevitable, it is more expensive than term insurance. Monthly premiums are higher but can be worth the cost given that it never loses its value.
  • It might be unnecessary for some. For those who are single and have no dependents, life assurance policies might be seen as unnecessary. If you don’t have anyone to act as your beneficiary, you don’t need a life assurance quote.
  • You could be making payments into old age. Most life assurance policies have an age at which you no longer have to make payments to maintain the value of your policy. This age could be anywhere from 70-90. This means that you may have to continue making payments into your 70s and 80s, even after you’ve already retired.

How much does Life Assurance policy cost?

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.

When can I stop paying into my Life Assurance policy?

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.

How much does Life Assurance cover?

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.

Is the payout tax-free?

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.

How can I use my Life Assurance payout?

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.

Can I cash out my Life Assurance policy early?

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.

Where can I get a Life Assurance Quote?

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.