Insurance > Life Insurance vs Life Assurance

Life Insurance vs Life Assurance

by: Joseph Kenny

People spend a lot of money on complicated financial products and it is sometimes difficult to keep track of what products perform what tasks. Many people are not aware of all the financial products that are available or they only know of them vaguely. They may not know how much they cost or the potential benefits they offer. How can consumers make informed decisions on what products they would be willing to buy if they do not have this basic information? This problem can often lead to consumers buying unsuitable of overpriced products simply because they feel they should have some financial protections available but don?t have the details to make an informed choice.

One of the common questions many consumers have is regarding the difference between insurance policies and assurance policies. Put simply, insurance policies cover the costs of an event that might happen while assurance policies will pay out on the occurrence of an event that is certain to happen. Insurance policies only last for a specific period of time. If the event occurs within that time, they pay out, otherwise they are finished. Therefore, if no claim can be made within the term of the policy, they have no remaining value.

Guaranteed Payout

An assurance policy is different. Assurance policies always pay out. For example, a life assurance policy will generally pay out upon death or upon reaching the age of 65. How does this policy work? Well, they combine two elements; an insurance element, which will pay out if, the person dies early. This will then be used to pay for the funeral or support his family. But then there is another payment made every year and this is the investment portion. The insurance company invests this part of the premium on behalf of the policyholder and when they reach the age of 65, they pay this out. Life assurance policies are therefore often used both as a method of life insurance and as a method of saving for retirement.

Do You Need Money Now?

If you wish to cash in the investment portion of a life assurance policy early this is generally possible. However, there will usually be hefty penalties added to this so it is unadvisable to cash in early if you don?t have to. The distinction between insurance and assurance is also becoming more blurred as more companies offer both types of policy or add features of one type of policy to their other type to make them more attractive. The distinction is still important so that you know what to ask for and know what kinds of facilities are available for insuring your life and providing for your future.

About The Author

Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of insurance in the UK. If you found this article interesting you may find more articles of the same nature in the insurance guide located on site.

Looking After Your Pet?s Health

by: Joseph Kenny

Animal lovers have been saying it for years, but animals, especially pets, are people too! While this is usually meant as a joke, there are elements of truth in it. Many people consider their pet to be a member of the family, and especially for children, the companionship of a loved pet can be something they?ll remember and cherish for their whole life.

That is why there are some things that you should think about for your pet. Obviously you will want it to be happy, and you should therefore make sure that you are feeding it well, with nutritious and healthy food. This doesn?t mean going overboard and giving your dog steak every day, but there are plenty of good quality pet food brands on the market and if you choose one of these it should keep your pet happy and healthy.

Another thing you may wish to give consideration to is housing and space. Make sure you have enough space for the pet...

Looking After Your Pet?s Health

Insurance > Looking After Your Pet?s Health

Advantages Of Whole Life Insurance Policies

Advantages Of Whole Life Insurance Policies

by: Donald Lusan

When you consider the advantages of whole life insurance policies I hope you will conclude that this is life insurance worth owning. I have no objection to term life insurance and even owned some when I was much younger. Each type of policy has it's place and it's own function. I cannot, for the life of me, understand why some people never have appreciated this. I refer to the term advocates who seem to hate the thought of buying a whole life policy.

The First Of The Advantages Of Whole Life Insurance Is The Death Benefit

The whole life insurance policy assures you a guaranteed death benefit that never decreases and upon death is usually free of federal income taxes. If you choose you may take the death benefit in the form of a monthly income instead of a lump sum.

The Premiums Remain Level; Another Of The Advantages Of Whole Life Insurance Policies

When you buy a...

Advantages Of Whole Life Insurance Policies

Insurance > Advantages Of Whole Life Insurance Policies

Insurance Glossary of Terms

Insurance Glossary of Terms

by: Darren Yates

Assured - Those insured under the terms of an insurance policy.

Benefit - The money paid to the policyholder when a claim is made.

Bid Price - The selling price or cash-in value of your unit holdings.

Bonus - Relates to a with-profits policy. The amount of money added to the benefit payable under the policy. The amount is dependent upon the profits made by the insurance company. Added bonuses cannot be taken away.

Convertible Term Assurance - A term insurance policy which gives you the option to convert your current policy to a whole-life or endowment insurance policy, without having to take further medical examinations.

Critical Illness Insurance - A policy that pays out a lump sum on the diagnosis of life threatening illnesses indicated in the terms of the plan.

Decreasing Term - A form of term life insurance where the death benefit decreases each year as per your policy....

Insurance Glossary of Terms

Insurance > Insurance Glossary of Terms

How To Deal With Your Auto Insurance Company

How To Deal With Your Auto Insurance Company

by: Stu Pearson

Disputes, especially when it comes to settling insurance claims, are not new scenarios. In fact, they take place every day. Just what causes these disputes? Well, one of the obvious reasons is most policy holders think that they deserve to be paid a larger settlement than what they receive. Second, claims are slow to process. And third, claims are denied.

There are various ways to deal with your auto insurance company. First, is the aggressive approach, which I am not encouraging since I am a peace-loving individual, and believe that everything should be settled in a peaceful and civilized manner. There are actually several peaceful options which a policyholder may undertake depending on the degree of insurance dispute.

For cases wherein your insurance agent is unable to solve your problem, it is advised to get the name and then the phone number of your insurance company?s...

How To Deal With Your Auto Insurance Company

Insurance > How To Deal With Your Auto Insurance Company

Buying Life Insurance Online ? Is It A Really Good Idea?

by: Michael Challiner

The advent of the internet has opened up the possibility of cheaper life insurance for all.

In years gone by, if you were considering life insurance you would probably have invited an insurance salesman from your favourite insurance company to meet you or alternatively gone to your local insurance broker. But rarely would you have been courageous enough to get competitive quotations. It just wasn?t done. You trusted the salesman to do the best for you and surely you thought, life insurance is somewhat technical and requires specialised knowledge. All very cosy. All very expensive. How life has changed!

People now realise that life insurance is not that complicated. If on a scale of 1 to 10, buying car insurance online rates 9, life insurance must be a 7 or 8. This has opened up the Internet as a prime arena for cut-price life insurance. That?s not to imply that...

Buying Life Insurance Online ? Is It A Really Good Idea?

Insurance > Buying Life Insurance Online ? Is It A Really Good Idea?

Car Insurance Pricing Plans

Car Insurance Pricing Plans

by: Joseph Kenny

The law requires liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Extra coverage on your own vehicle, called comprehensive insurance, is optional.

Insurance companies based on a number of risk factors will calculate the price you pay for this insurance. Basically how it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium you?ll pay.

Assessment

Common factors that will be used to assess the premium are the value of the car you?re driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much you?ll drive the car, how your driving record stands, how long you?ve held your license...

Car Insurance Pricing Plans

Insurance > Car Insurance Pricing Plans

Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

by: Rachel Lane

There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it?s important that you do a full evaluation of your needs before you pursue the different insurance options.

The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump...

Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Insurance > Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Medical Insurance Policy

Medical Insurance Policy

by: Jody Taylor

A Medical Insurance policy is a contract between an insurance company and an individual or a group which promises to pay for medical care reasonably required by the insured policy holder for treatment in case of any injury or illness. Even now a day?s medical insurance policy is provided for disease like obesity.

If an individual has taken up a medical policy then he pays the premium according to a specific time frame as decided between the two groups. Usually, the policy takes care for the health & medical acre of an individual but if the premiums value is higher the insurance covers the family members also. In the case when the policy is taken by a group or an association, then all the individuals under the association receive the certificate of insurance. Some key points like payment of premiums, deductibles and co-pays are decided at the beginning and both the parties have to abide by these rules...

Medical Insurance Policy

Insurance > Medical Insurance Policy

Fall Fashion Trend - Take Your Jacket To The Shrink

by: Brenna Cleeland

Fall and winter may have brought out long peacoats and trenches before, but not this year. One of the most sought-after pieces for the upcoming season will be the shrunken jacket, in a variety of styles. The difference between these new, tinier versions of your traditional autumn and winter favorites is their length; cuts are the same as traditional coats, but they hit slightly above the...

Fall Fashion Trend - Take Your Jacket To The Shrink Insurance Life Insurance vs Life Assurance

Insurance > Fall Fashion Trend - Take Your Jacket To The Shrink

Insurance

Spice Up Your Living Space With Flowers

by: Wesley Berry

Do-it-yourself home improvement is all the rage these days. Just flip on the television and you're sure to run across a program to teach you everything from how to paint a room to how to replace your shower stall. But, let's face it, even if you make those home improvements yourself, they can be quite costly. I've got a great solution that's far less expensive than a complete home makeover?flowers!

Insurance Spice Up Your Living Space With Flowers

Insurance > Spice Up Your Living Space With Flowers