Money or your life or both?

Life assurance is more of a flexible friend than you may think. It all depends on your needs.

There are so many different varieties of insurance linked to the life of the policyholder and so many life assurance companies with similar offerings that expert advice can be invaluable.

Term assurance

At its simplest, in exchange for paying a premium, the life office will agree to pay out a certain sum if the insured dies before a certain date.

If the policyholder does not die within the term, the policy merely lapses. There is no payout of any sort. These policies are usually cheap to buy and they perform the useful function of providing protection for those who benefit from the policy, such as family members, if the policyholder dies.

The same principle of protection applies to a number of other types of insurance whether the benefit is, for example, to provide specific help to the deceased's family, or to repay a mortgage.

Whole-of-life policies

Similar in nature to term assurance, except whole of life policies provide cover for the whole of the insured’s life rather than for just a defined term. Generally more expensive than term assurance because there is a certainty that the policy holder will die at some time. The benefit payable on death will either be a lump sum or the value of the invested fund, whichever is higher.

There are also some investment policies available which offer an element of protection within the policy, such as endowments and with profits policies. See the investment area of this website for further details.