Life Insurance And Life Assurance Won't Be The Same!
Life Insurance And Life Assurance Won't Be The Same!
A lot of people think that life assurance and insurance are one and the same, just with different names. However, this isn't the case at all. Each of them has an unique role and different advantages and disadvantages. So be sure to get the right one, the one that is actually the best option for you.
Life insurance coverage is for a certain period of time. Only if you kick the bucket during this period will the insurance company pay out the agreed upon sum of money. If however, you outlive the policy, it expires and has no value whatsoever. The only time you get the benefit of a life insurance policy is if you claim.
Life assurance on the other hand is both a smart investment and insurance. The policy will pay out something that is equal to an agreed upon amount or the amount you have dedicated to it, whichever would be the highest in value at the time of the claim. The amount you have invested is dependent on how long you've had the policy and paid premiums and the insurance company's performance. Should you pass away whilst the policy is still in effect, the insurance company pays out the higher value, if however, you outlive the policy, you will often get paid out a lot more due to being given a terminal bonus (explained later).
Each year that the policy is in effect, the insurance company will add an added bonus amount to the value of your policy, they will regularily add an additional bonus at the end of the policy. What this means is that your life assurance policy increases each year. The exact amount that you are awarded is determined by the insurance company's performance in the investment market. These bonuses may either be cashed in using the insurance company or sold to some other specialist investment broker.
Addititionally there is the option of whole life assurance. There is absolutely no deadline (excuse the pun) for these policies. They stay in effect for your entire life span and will pay out the exact amount agreed upon or the investment value at the end of your life.
It is advisable to consult with an advisor (a registered financial advisor) prior to going ahead and getting a life assurance or life insurance policy to find out what will be most effective for you. For the elderly or people with high risk jobs, it may be more worthwhile to get life insurance, whilst those who are relatively young and careful may benefit more from life assurance. It is all based on what your lifestyle is and what your life expectancy is.
Life assurance also is frequently costlier than life insurance, but does pay out more when the policy expires than life insurance does. So take time to think for a while about it and select the right option for you. Which one you choose depends on your income and preferences. I personally would take out life assurance, but that is just me, you decide for yourself. Critical Life Insurance Explained Critical Illness Life Insurance For The Hard Times Life For Your current Wheels and Tires - Correct Air Pressure Life Insurance Marketing - An Unconventional System That Works Extremely Well! How Critical Illness Life Insurance Really Works Can You Mix Critical Illness Life Insurance With Life Insurance The Purpose Of A Life Insurance Search How To Conduct A Life Insurance Search The Correct Way Life Insurance Search For Protection Leads How A Life Insurance Search Online Can Save You Time And Money Converting Term Life Insurance To Permanent Insurance How Preexisting Conditions Affect Your Possibility Of Getting Life Insurance Is It True First Aid And Cpr Save Lifes