When you start looking for life insurance you might see the phrase “life assurance” and assume it is the same thing. In fact, it is common for people to confuse these two, very similar terms when they look for a quote to protect their loved ones.
However, by looking at this issue in detail we can see that there are some crucial differences between the two types of policy that you need to be aware of. So, what are the main points when thinking about life assurance vs life insurance?
When you decide to take out a life insurance policy you are getting a type of cover that will pay out if you were to die while it is in force. This is typically known as term life cover as it runs for a fixed period and doesn’t pay out if you live until it finishes.
This is the most common type of life cover that people look for to cover debts such as a mortgage. It can also be used as a way of replacing your income in order to lessen the financial impact of your family losing you.
While getting a life assurance quote sounds very similar to doing the same thing with life insurance in the UK, it is something that is set up differently and that you are likely to choose for different reasons. Overall, this is best viewed as being a mixture of protection for your family and of an investment.
This is because a life assurance policy will pay out on death but will also pay out if you decide to cash it in before then. With this kind of policy you can choose to either get protected for a set period of time or else get a whole of life policy that runs until you pass away.
There is a difference between life assurance and life insurance, the choice between these types of life policy is really down to your own situation and what you want for the future. Having said that, the first thing you are likely to notice is that a life insurance quote is less expensive than its life assurance equivalent.
If you can afford to pay the extra amount and like the idea of adding diversity to your investments with life protection than choosing life assurance could make sense. However, if you are looking to get an affordable life quote that gives you the basic cover that you need then this is a sound choice.
By getting a few different quotes to compare you should be able to fairly easily work out which kind of life cover is ideal for you just now. Of course, you can always take out a different policy in the future if your circumstances change.
This depends. Unless you've specifically requested it as part of your policy, then the funds won't be initially available to your loved ones. This is due to payouts being delayed by questions around the cause of death, and other times insurance providers are too slow to send payments before a funeral is organised.
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