The average man in the street That assumes Life Insurance and Life Assurance are names for the same forms of insurance. How They Are Wrong! But do not hang your head in shame, many Financial commentators get it wrong too! Life Insurance and Life Assurance Financial Perform different roles and are poles apart in cost - so it helps to surf for 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 context That it's just like your car insurance!
Life Assurance is different. It is a hybrid mix of investment and insurance. A Life Assurance policy pays out a sum Equal to the Higher of Either a guaranteed minimum underwritten by the insurance policy's investment Provisions or its valuation. The value of the investment component and is then reliant on the Insurance Company's investment performance and length of time you have been paying the premiums.
