Articles tagged "life insurance"

A life assurance policy that provides death protection for the insured’s entire lifetime but with an investment element. The insurance component pays a stated guaranteed amount upon death of the insured, and the investment component accumulates a cash value that the policyholder can either leave invested to compound up or withdraw as a lump sum or income.

Term assurance provides cover for a fixed term with the sum assured payable only on death. Term assurance premiums are based primarily on the age and health of the life assured, the sum assured and the policy term. The older the life assured or the longer the policy term, the higher the premium will generally be. There are generally two types of term assurance.

Payment protection insurance is designed to cover you should you fall ill, have an accident or lose your job and can’t make repayments on loans or credit cards.

Generally thought of as being interchangeable with life assurance, but isn’t. Life insurance insures you for a specific period of time, at a premium fixed by your age, health and the amount the life is insured for. If you die while the policy is in force, the insurance company pays the claim.