Life Assurance
There are so many different types of Life Insurance and so many Life
Insurance companies with similar products: it is therefore, always
sensible to seek expert advice.
For Life assurance we usually offer products from a selected panel
of providers.
Term
Assurance - This is the simplest form of Life cover, where the
life assured pays a premium to the life office, who agree to pay out
a certain sum if the insured dies before a certain date. If the policyholder
survives throughout the term, the policy normally lapses with no value.
These policies are usually inexpensive and provide useful protection
for those who would benefit from the policy proceeds, such as family
members or business partners, if the policyholder dies. The proceeds
could also be used to repay a mortgage or other debt.
Investment
- Some protection policies also provide an investment element as well
as the protection of life cover. Premiums are paid into the policy
and, once the cost of insurance cover has been taken into account,
money is invested, so that the policyholder or other beneficiary can
benefit from an investment value, particularly if the policyholder
survives to the end of the policy term.
Endowments
- Regular premiums are paid into the policy and when the Endowment
term ends, a lump sum is paid out. Most Endowments have a life cover
element, in order that the lump sum can become payable should the
policyholder die during the policy term.
Whole
of Life Policies - These can be similar to Term Assurance, except
that the policy is designed to provide life cover for the whole of
the insured's life rather than just a set term. Whole of Life policies
are mostly dearer than Term Assurance policies, because the company
is sure that the policyholder will die at some point. These policies
are designed to protect estates and businesses, where liabilities
may be of a long term nature, such as potential inheritance tax (IHT).
