The different terms that come with protecting your family in the event that you pass away can be a bit overwhelming to say the least. There are so many options currently available in the world of insurance that people are finding it difficult to weed through them and choose the one that is right for them. The matter is that you need something specific and when you have set all of the parameters for what you need the decision is simple. Getting to that point is the hardest thing for most people. They have the decision in front of them and have a difficult time making up their mind. Such is the choice between life assurance and life insurance, and why it’s important to compare term life insurance options.
There are several things that you should understand about the differences between life assurance and life insurance. First off they are not the same thing. There has been a rumor moving that these two policies are inherently the same and just make use of fancy name changes to dupe the customers. This is not true on many levels as these two policies are completely different in most respects. The fact is that there are very few similarities between these two and choosing between them is not too difficult.
Life assurance is something that a lot of people are finding very prudent these days when retirement is uncertain. With this type of policy you have certain guarantees that do not come with life insurance. This is not to say that life assurance is better than life insurance because that would be wrong as both types of policies have their merits and strong points that need to be considered. Taking into account the strong points of these policies makes it much easier to decide and many people are finding it prudent to have both instead of just one.
Life assurance is a multi-level policy that is used for two reasons, retirement and death benefits. The premiums that you pay are spilt in two, with one half going to the death benefit and the other half going to the investment portfolio that is constructed for the applicant. There are also two pay outs with this type of policy unlike life insurance which will only pay out once.
Life assurance pays out twice, once at age sixty-five and then again at death. The payout for age sixty-five is the result of the insurance company investing the half of the premiums in various things. The company will pay out the stipulated amount and then keep the rest which will turn into profit for the company. The rest of the money that you have been paying in is set for the death benefit which is paid to the beneficiary that you set. This is a great way to get some money that is need for retirement. If you play your cards right you will have a nice chunk of money to work with when you turn sixty-five.
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