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When Might I want Life Assurance as Opposed to Life Insurance?

There are two main points about a Life Assurance policy. Firstly they will always pay out – either at the end of the policy’s term or when a policyholder dies whilst the policy is in force. The second point is that the policy is part insurance and part investment. So the final payout will depend upon how long the policy has been in force, the size of the policy and the insurance company’s investment performance.

Life Insurance only pays out if a policyholder dies whilst the policy is in force and there is no element of investment. When a Life Insurance policy comes to the end of its’ term, that’s it; the policy is finished and it has no value. You will also find it almost impossible to get insured beyond the age of 70.

Life Assurance is typically used when you want cash to be available at a set date or earlier if you were to die. You use the guaranteed insured value to provide the minimum you would want if you were to die tomorrow and let the investment element build up. For example, Life Assurance policies can be used as a nest egg for the day you expect to retire or for your son’s or daughter’s 18th birthday.

Questions we get asked about Life Assurance

What is the difference between Life Assurance and Life Insurance? | What is a Whole of Life policy? | When might I want Life Assurance as opposed to Life Insurance? | What are the alternatives to Life Assurance? | How can I cash in my Life Assurance policy? | How can I buy a Life Assurance policy?

Questions we get asked about Life Insurance and other protection insurance

Why are life insurance prices so low on the Internet? | What is the difference between a Life Insurance Company and a Life Insurance Broker? | Can I get a Quote now online? | Is the quoted price the same as the price I get charged? | What is a “Rated” policy? | Can Life Insurance cover be arranged quickly? | What does Life Insurance do? | What is the difference between a Reviewable and a Guaranteed policy? | What are the most common optional extras available on life insurance policies? | What does “Term Insurance” mean? | What does “Level Term” insurance mean? | What does “Decreasing Term” insurance mean? | What does Mortgage Life Insurance do? | What does Mortgage Payment Protection Insurance do? | What does Family Income Benefit Insurance do? | What does Income Protection Insurance do? | What does Critical illness Insurance do? | What does Terminal Illness Insurance do? | How does age affect premiums? - Will my premiums increase over time? | Will my medical history influence my premium? | Do I need a medical? | Are smokers charged more? | Are there any extras to pay? | If I die, how is a claim made? | Is a UK Life Insurance policy valid if I work abroad?