Introduction to Life Assurance
Life assurance is designed to provide cover until the person who is covered passes away. This type of plan is designed with the idea that when the person dies, any outstanding debts would be paid off and your dependants would be financially stable. It can be more expensive than life insurance as it covers you for a longer term and pays a lump sum in the event of death, whenever that occurs. This type of cover provides a guaranteed pay out. The amount of cover will be dependant on the individuals requirements and circumstance i.e level of income, age, financial liabilities, dependants etc.
Types Of Life Assurance
You may have heard the phrase 'whole life' or 'whole of life' used in relation to this type of policy, bit there are other types of cover e.g. term assurance, endowment policies etc. This type of policy premium can be paid to the insurance provider annually or monthly for a set term or until death.
Please be aware that in some cases this type of assurance is based on an assessment of the health of the applicant.
THESE PLANS TYPICALLY HAVE NO CASH IN VALUE AT ANYTIME AND COVER WILL CEASE AT THE END OF THE TERM. IF PREMIUMS CEASE, THEN COVER WILL LAPSE.