Many people think that life assurance and insurance are one and the same, just with different names. However, this is not the case at all. Each of them has a completely different role and various advantages and disadvantages. So be sure to get the right one, the one that is actually the best option for you.
Life insurance is for a particular period of time. Only if you perish during this period will the insurance company pay out the agreed upon 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 if you claim.
Life assurance on the other hand is both a good investment and insurance. The policy will pay out something that is equal to an agreed upon amount or the amount you have dedicated to it, whichever is 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 been paying 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 larger value, if however, you outlive the policy, you will often get paid out even more due to being awarded a terminal bonus (explained later).
Every year that the policy is in effect, the insurance company will add an added bonus amount to the value of one's policy, they will also often add an additional bonus at the end of the policy. What this means is that your life assurance policy increases each year. Just how much that you are awarded is established by the insurance company's performance in the investment sector. These bonuses may either be cashed in using the insurance company or sold to a specialist investment broker.
There is also the option of whole life assurance. There isn't any deadline (excuse the pun) for these policies. They remain 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 an industry expert (a registered financial advisor) before you go ahead and getting a life assurance or term life insurance policy to see what will be best for you. For older people or people with high risk jobs, it may be more worthwhile to get life insurance, whilst those people who are relatively young and careful will benefit more from life assurance. It's all determined by what your lifestyle is and what your life expectancy is.
Life assurance also is frequently more pricey than life insurance, but does pay out more when the policy expires than life insurance does. So take the time to think for a while about it and choose the best 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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