looking at life insurance, not sure whether to go for life insurance, or life assurance... any thoughts?

Asked by isabella ribb

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Answered by r.murdison
To be honest, in current usage these expressions are used interchangeably but strictly speaking life assurance is a whole of life policy because you are 'assured' of dying eventually.Life insurance is what's known as term insurance because you are insuring against death within a specific time period.
Whole of life is usually more expensive than term insurance because it's possible for you to survive the chosen term without the life policy paying out whereas nobody is immortal!
| 04.13.11 @ 10:38
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$commenter.renderDisplayableName() — {comment} | 11.18.17 @ 13:48
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Answered by isabella ribb
really helpful, thanks. too bad we aren't immortal... or is it?! :) | 04.14.11 @ 14:35
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$commenter.renderDisplayableName() — {comment} | 11.18.17 @ 13:48
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Answered by r.murdison
I've read that death forces us to 'live' our lives but I think I'm with Woody Allen "I'm not afraid of death, I just don't want to be there when it happens". | 04.14.11 @ 15:06
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$commenter.renderDisplayableName() — {comment} | 11.18.17 @ 13:48
Answered by Richard Salter, IFA in Trowbridge, WILTSHIRE
Exactly right - whole of life cover, so named because it will run for the rest of your life until you die (so long as you keep paying the policy premiums!) gives the ASSURANCE that it will eventually pay out.

By contrast life insurance is simply put in place for a defined period of time after which time you stop paying the plan premiums and your cover will end. There is thus no assurance that there will be a death and thus a valid claim. In this respect life insurance is no different to car insurance - it simply covers you for the time that plan premiums are being paid and then ends (hopefully without a claim needing to be made!) Life insurance is thus typically cheaper than whole of life assurance as the risks of your death during the policy term are less. | 04.18.11 @ 09:42
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$commenter.renderDisplayableName() — {comment} | 11.18.17 @ 13:48
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