What are the main facts you need to know about Life Assurance?
Life assurance is a type of life insurance, the difference being that with life assurance you get the guaranteed proceeds, no matter if you live, or if you die. Of course, in case of your death, the beneficiaries named in the assurance policy will receive the coverage. If hopefully, you are alive by the time the policy reaches its maturity term, you are entitled to a lump sum of money plus the accumulated dividends.
The end term of the life assurance policy (maturity date of the policy) can be set to a certain number of years, or to a specific age, depending on your personal preferences. This fixed term or age at which you get to receive the proceeds is perfect for people who are planning their retirement, the college for your kids, or simply if you have something planned for a certain time of your life, when you will need the money.
The greatest advantage of life assurance is that you are guaranteed the proceeds no matter if you live or die before the maturity date. This way, your family will be provided for in the unfortunate case of your death, or you will have a bundle of money at a certain age and time of your life.
This is what makes this type of insurance different from the other types, where somebody or something gets insured against something actually happening, such as getting your car stolen, your house destroyed by a fire or another unfortunate incident. In the case, that nothing happens to you or your property, you will normally get nothing from the insurance company despite the premiums you have paid.
The “assurance” in Life assurance is that you or your family will get the money dead or alive – either way.
When choosing a life assurance policy, you have to know that there are options for the payment of the premiums – limited for a certain time period, or premiums payable during the entire term of the policy.
Furthermore, you may want to consider to sign an individual or a group life assurance. This way, in the case of the death of either your spouse or yourself, the surviving spouse will receive the lump sum. The different joint assurance policies offer payment after the first or after the second death.
There are several types of life assurance policies available, including:
1. The Whole life assurance policy, which pays the sum upon your death regardless of your age. Obviously, it has no term.
2. The Term life assurance, which as the name suggests is for a certain period of time, and after the term comes, an assured sum is paid to the person insured.
3. The Family income cover life assurance offers the payment of monthly sums to the beneficiary after the term is over, or in case of the death of the insured person. The monthly payments are paid out until the entire insured sum has been covered.