Life Assurance: Know The Difference

2007-03-08 10:33:40

( Insurance )



A lot of consumers tend to pay for overpriced financial products without knowing exactly what they are buying. A lot of people are not even aware of all the products available in the market. Most consumers are not aware of the benefits these products offer. From the consumer’s view, these financial products are difficult to keep track of and sometimes it becomes difficult to pinpoint which product does which tasks. This issue will often lead to people buying financial products that are overpriced and not right for their needs. Without in-depth details of the product, you cannot make an informed choice.

One of the most common distinctions you should make when buying any kind of financial product is to compare life assurance with life insurance policies. You should not make the mistake of thinking they are the same because they are not. Insurance policies offer coverage for events that may or may not happen. Life assurance policies on the other hand offer coverage for events that will certainly happen like coming to a certain age or death. Insurance policies are only valid for a specified amount of time. If there is not claim within that period of time when your insurance is valid, the policy loses its value.

Life assurance policies are different because these policies always pay out. Usually, the pay out event is at the time of death to cover funeral and burial expenses or upon reaching a certain age. The age declared in the policy is usually the age when you retire. If you die before you reach retirement, the proceeds of the policy will be given to your beneficiaries. Life assurance policies also act as a method of saving for retirement for a lot of people.

However, the distinction between life assurance and life insurance policies are becoming blurred because more and more companies offer the features of both into one policy to make them more attractive to consumers like you.


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