Life assurance or life insurance?
With the different terminology often used in the financial services marketplace, it’s understandable that some people find financial planning a confusing world to navigate. One common item of confusion is the use of the terms life assurance and life insurance. It’s important to note that both of these terms are correct; it’s simply a matter of taste as to whether a product supplier uses the former or the latter. Technically, assurance means that a product is providing cover for a situation that is certain to occur, and insurance infers that this situation is a possibility. In the financial services market however, both terms are used to mean exactly the same thing – so whether you’re choosing life assurance, or life insurance, you’re ultimately getting the same type of product.
How does life assurance work?
It’s not the most cheerful of subjects, but death is the only real certainty in life and as we never know when our time will come, it’s important that we have provisions in place to protect those closest to us. When looking for the right life assurance cover, there are certain things you’ll need to bear in mind.
You’ll generally have a choice of selecting a policy on a ‘fixed term’ or a ‘whole of life’ basis, and you’ll need to select the amount that you would like your loved ones to benefit from in the event of your death. These factors, along with your age and state of health, will dictate how much you’ll be required to pay into your policy every month. Then, providing you have satisfied the criteria when you die (always remember to check the small print!), your family will receive the predefined amount.
Why is life assurance so important?
Losing a loved one is undoubtedly one of the biggest traumas that we unfortunately have to face in life. However, if this loss also leads to financial hardship, then the stress is compounded. A life assurance or life insurance policy means that funeral costs, mortgage payments and other financial responsibilities can be met when this help is most needed. You may also be able to take out a life assurance policy which includes critical illness cover – this means that you’ll receive a payment if you should ever become seriously ill and need help with meeting medical costs or covering bills that your salary used to cover.
Of course, there’s always help at hand if required when looking to source a life assurance or life insurance policy – and when you work with an independent financial advisor at Guardian Wealth Management, because they’re not tied to any particular life assurance provider you can get a whole market view, ensuring the very best policy for your personal needs.