There are many forms of life assurance. Choosing the right one for you can depend upon a number of factors including tax, cost and protection required.
Life assurance can be another way of describing a ‘whole of life’ policy. An insurer may refer to life assurance, meaning the cover is indefinite, with no fixed expiry date, unlike a life insurance policy term.
The word ‘assurance’ is used because you’re assured that a valid claim will be paid regardless of when you die, so long as you pay your premiums.
Life assurance policies offer insurance cover for the whole of your life, rather than a chosen policy length.
A life assurance payout is tax-free, and provided the premiums have been paid, a claim can be made upon the death of the insured person.
You’ll have the advantage of guaranteed cover for as long as you need it, but the reality is you’ll pay higher premiums for the privilege.
These policies are most commonly used in Inheritance Tax planning.
If you’re interested in whole-of-life cover, we can discuss your current situation to find out if this is the right type of protection for you.