Life assurance what is it

The second thing you should know is the difference between life assurance and life insurance. Life insurance, like other forms of widely available insurance, only has a value in the event of a claim. Life assurance, however, mixes investment and insurance: it pays out either a guaranteed minimum or its investment valuation, including the accumulated value of annual bonuses paid by the life assurance company, at the time it is redeemed.

These contracts are designed to produce long-term, tax-efficient capital growth. At the end of the term, the policy ends, and has no residual value. While Family Offices have traditionally been located in Europe and the United States, their geographical reach is expanding to other areas of the world such as South-East Asia and Latin America where the number of HNWIs and Ultra-HNWIs is increasing rapidly due to the effects of globalisation and the significant economic expansion of emergent economies.

Moreover, providing more complex and tailor-made services will undeniably allow Family Offices to differentiate themselves from competition in a market that is becoming more global and competitive. Fiscal aspects will undoubtedly continue to play a major role in family estate planning but Family Offices should understand that in the current context other aspects need to be considered as well, such as for instance: different family members residing in different jurisdictions, minors as potential future beneficiaries of the family wealth or disabled or incapacitated family members.

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Whose life are you covering? Do you need life insurance? How much is life insurance? How do I buy life insurance? Five things to think about when buying life insurance. How does life insurance work? The amount of money paid out depends on the level of cover you buy.

Back to top. There are two main types:. Term life insurance policies. There are three kinds of term life policies. Level — pays as a lump sum if you die within the agreed term. The level of cover stays the same throughout. This is the most simple and affordable option. Decreasing — the level of cover reduces each year. Increasing — the level of cover rises over the term of the policy, to keep up with inflation.

Whole of life insurance policies. These pay out no matter when you die, as long as you keep up with your premium payments. Over 50s life cover.

You can choose a joint policy or a single one. Life insurance pays out when you die — not when you lose an income due to illness or disability. This is what income protection policies are for — find out more in our guide What is income protection insurance. You might also want a policy that covers your funeral expenses. Join our Facebook group. Your monthly payments will depend on things such as: your age your health your lifestyle whether you smoke your family medical history the length of the policy your occupation — a high-risk job might push your premiums up.

You can get life insurance quotes from: banks specialist brokers — see our guide on When to use an insurance broker comparison sites — see our guide on How to buy insurance through comparison sites direct from insurers — not all sell through comparison sites credit card companies independent financial advisers — see our guide on Choosing an adviser retailers, including major supermarkets mortgage providers — most offer life insurance automatically when you take out a mortgage, but you might be able to find a better deal elsewhere.

Be honest about your medical history. Read the small print. You can change your mind. You have 30 days from buying the policy to change your mind and get a full refund. Can you switch to a better deal? Consider a waiver. This is to protect against your policy being cancelled if you miss a monthly payment. Need more information on pensions?

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Read more. These two types of insurance provide cover for quite different circumstances. Do you need a medical to get life insurance? Discover more. Can you get life insurance with a pre-existing condition? Find the answer. More about our Macmillan partnership. How to plan an eco-friendly funeral Whether you want to go fully eco-friendly, or just make small changes to help reduce the environmental impact of dying, here are some good places to start. What happens to a life insurance policy when someone dies?

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