You’ll be covered for accident and sickness that prevents you from working for a prolonged period of time. Rather than paying out when you pass away, an income protection policy will pay out to you to help replace lost income if you become unable to work. The sum assured remains fixed but is significantly lower than other policy types, making it more suited to help cover funeral costs or an inheritance. This is because it's possible to pay more into the policy than the overall sum assured.Īn over 50s plan offers guaranteed acceptance for all UK residents aged 50 - 85 years. Whole of life insurance provides lifelong cover and, as a result, can be used to help cover large expenses or provide an inheritance for your loved ones.ĭue to the longer length of cover, it’s best suited to those in later life who are in good health. Life insurance pays out if you pass away during a term, whereas life assurance pays out when you pass away (hence, the assured).Īn example of life insurance would be level or decreasing term cover, which only pays out if you pass away during the policy.Īn example of life assurance would be an over 50s plan or whole of life cover, where a pay out is guaranteed You may have wondered what the difference between life insurance and life assurance is? We can provide you with all the information you need to make a fully informed decision. Speaking to a life insurance expert, such as Reassured can help you to determine the right policy to meet your needs. This makes it well suited to help cover a lost income or day-to-day family living costs. This makes it more suitable for covering such aspects as a repayment mortgage, which reduces over time.įinally, family income benefit provides ongoing, tax-free, monthly payments for the remainder of your policy if you pass away. This makes it ideal for protecting fixed costs, such as an interest-only mortgage or providing an inheritance.ĭecreasing term life insurance, on the other hand, provides a lump sum pay out which reduces throughout the life of the policy. Level term life insurance provides a fixed lump sum which holds its value throughout the life of the policy. If you pass away within this predetermined time frame a lump sum pay out will be made to your loved ones. Term-based life insurance provides cover for a specified period of time.
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