The Difference Between Life Insurance And Life Assurance

The average person thinks that Life Insurance and Life Assurance are different names for the same thing. Many financial commentators too fail to note the difference.Life Insurance and Life Assurance perform different financial roles and are poles apart in cost – so it helps to buy the correct product.

Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum. If you survive to the end of the term, the policy is finished and has no residual value whatsoever. It only has a value if there is a claim – in that context it’s just like your car insurance!So Term Insurance is a Life Insurance product. Read more of this post