What is the difference between life insurance and life assurance?


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What is the difference between life insurance and life assurance?

Frequently asked questions

  • What is life assurance?
  • How does life assurance differ from life insurance?
  • Which other life insurance options are available?
  • Life assurance vs life insurance
  • Where can I find a policy?

What is life assurance?

Life assurance, often known as a whole of life policy, is a type of insurance that continues indefinitely and pays out a lump sum once a policyholder passes away (assuming they’ve met their monthly premiums).

Your premium tends to be higher for this type of life insurance because a provider expects to make a pay out at some point.

How does life assurance differ from life insurance?

While life assurance covers you for your whole life, a standard life insurance policy usually covers you for a set term. However, some life assurance policies do allow you to finish your payments at a certain age - this varies, but tends to be around 85.

Life assurance products involve an investment approach and so tend to be more complex. We don’t offer life assurance, so you may need to speak to a financial advisor or shop elsewhere to buy this type of policy.

Which other life insurance options are available?

Your personal circumstances will dictate the best life insurance policy for you. Therefore you should think very carefully about your specific needs – be it covering bills, childcare costs, a mortgage, or protecting against a future event such as a critical illness or your own funeral expenses.

Of course, you may well have a different view on the best life insurance policy if you’re a new parent.

Life assurance vs life insurance

Once you’ve thought out a plan it’s time to decide if a life assurance policy is for you. It’s worth being aware that over 50s life insurance can sometimes cover life assurance.

The term ‘assurance’ means that you’re guaranteed to be paid out upon death and typically ‘whole of life’ Insurance is the main assurance product.

To help you manage what is a complex subject our life insurance calculator can help you work out how much life cover you might need at your age.

Where can I find a policy?

With monthly premiums starting from as little as £3.54*, it could make sense to start your life insurance quote with us.

What’s more, it could take only 3 minutes to do a comparison with our panel of providers. We’ll clearly lay out how much each policy might cost.

Start a quote and enjoy peace of mind for you and your family today.
 

*10% of people could achieve a quote of up to £3.54 for their life insurance based on comparethemarket.com data in February 2018

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