Life assurance vs. Life Insurance
What is life assurance?
What is life insurance?
The difference between life assurance and insurance
The key difference is that a Life Insurance claim can only be made if the policyholder dies within the term of the policy. If no death occurs within the policy term then no claim can be made and the policy will end, thus a pay-out is not guaranteed.
Life assurance guarantees that you will receive a pay-out at some stage, this typically means that monthly premiums are much higher than those for life insurance.
So should you choose “assurance” or “insurance”?
To understand whether life assurance or Life Insurance better suits your needs you need to consider what the purpose is. Life assurance can be seen as more of an investment product due to the nature of the guaranteed pay-out, where the purpose is to provide their beneficiary with more financial freedom.
Life Insurance is more concerned with making sure you can still provide for your family if you were to die, by giving them the financial support required to ensure they can pay the bills, mortgage or any other responsibilities.
Now you know the difference, what now?
Beagle Street do not offer life assurance as a service, but we’ve put together a handy guide to help you decide how much life insurance cover you need.