LIFE ASSURANCE/INSURANCE

There is a difference…..

Assurance is covering for an event that will occur, whereas insurance covers for unforeseen circumstances.

Life Insurance will have a fixed term to cover unexpected circumstances such as critical illness or death over the course of typically your working career for level policies, or mortgage term for decreasing policies.

Life insurance is designed to pay out a tax-free lump sum if you die during the term of the policy. Cover is usually set up on either a ‘level’ or ‘decreasing basis. Level policies see the level of cover received remain at the same level throughout the term of the policy. A decreasing policy would see the amount paid out decrease over time, typically associated to be taken out alongside a repayment mortgage seeing the amount of cover decrease in line with the outstanding mortgage amount to pay off the family homes mortgage. Decreasing cover will tend to be cheaper than level cover due to amount gradually decreasing over time.

Life Assurance will cover you for your entire life often referred to as a ‘whole of life’ policy.

Whole of Life cover will be typically more expensive than life insurance due to the pay-out being a guarantee. It’s also more likely that premiums will be reviewed every few years, meaning they could increase throughout the life of the policy.

But, it’s important for us to have a free, no obligation chat regarding exactly what you want, before we provide our tailored solution to you.