It’s a common assumption the life insurance and life assurance are the same thing. In fact there’s quite a difference between these two types of policies. Here we are going to look at those difference to help you decide which one may be right for you.
Life Insurance
Life insurance is there to pay out a lump sum if you pass away during the policy term. There are two different ways this cover is usually arranged. One is on a level basis, where the payout remains the same throughout the entire period of the policy. The other is organised on a decreasing basis, meaning the level of cover decreases as time goes by. An independent financial advisor Marlborough will be able to help you determine which one is best to suit your needs.
Life Assurance
Life insurance is there to cover you for a set term. Life assurance covers you for your entire life. However, both options will give you and your family great peace of mind should anything happen. The cost of these policies tends to be a lot higher than life insurance because they cover a lot more. The main benefit of opting for life assurance is that you have that cover there for your entire life. Premiums are usually reviewed every few years and tend to increase the older you get.
Have you been looking for an independent financial advisor Marlborough to help you decide between life insurance and life assurance? Professional advice is always recommended when looking at a life assurance plan. For more information, visit sites like this independent financial advisor Marlborough.
Which One To Choose
The decision between these policies can be difficult to make, but it should depend on your circumstances and what you want from the cover. It could be that you want to pay off your mortgage for your relatives, in which case life insurance would be best. However, for people who want to leave a lump sum for their loved ones, life assurance is generally a better choice.
Ultimately, the choice between the two has to be up to you. If you need help, reach out to a professional who can talk you through the different types of cover and compare the costs of various policies.
