Many people think that life assurance and insurance are one and the same, just with different names. However, this isn't the case at all. Each of them has a completely different role and different advantages and disadvantages. So be sure to get the right one, the one that is actually the best option for you.
Life insurance coverage is for a specific period of time. Only if you kick the bucket during this period will the insurance company pay out the arranged sum of money. If however, you outlive the policy, it expires and possesses no value whatsoever. The only time you get the benefit of a life insurance policy is when you claim.
Life assurance on the other hand is both a good investment and insurance. The policy will pay out a value that is equal to an agreed upon amount or the amount you have dedicated to it, whichever would be the highest in value at the time of the claim. The amount you have invested depends on how long you have had the policy and paid premiums and the insurance company's performance. In the event you pass away whilst the policy is still in place, the insurance company pays out the higher value, if however, you outlive the policy, you will often get paid out even more due to being given a terminal bonus (explained later).
Every year that the policy is in effect, the insurance company will add a bonus amount to the value of your policy, they will regularily add an additional bonus right at the end of the policy. This means that your life assurance policy increases each year. The exact amount that you are awarded is determined by the insurance company's performance in the investment sector. These bonuses may either be cashed in with the insurance company or sold to some other specialist investment broker.
Addititionally there is the option of whole life assurance. There isn't any deadline (excuse the pun) for these policies. They stay in effect for your entire life time and will pay out the amount agreed upon or the investment value at the end of your life.
It is advisable to consult with a specialist advisor (a registered financial advisor) before going ahead and getting a life assurance or life insurance policy to determine what will be most effective for you. For seniors or people with high risk jobs, it may be more worthwhile to take out life insurance, whilst those who're relatively young and careful may benefit more from life assurance. It is all based on what your lifestyle is and what your life expectancy is.
Life assurance also is commonly more costly than life insurance, but does pay out more as soon as the policy expires than life insurance does. So take the time to think for a long time about it and select the right option for you. Which one you choose depends on your income and preferences. I personally would take out life assurance, but that is just me, you decide for yourself.
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