What is life assurance?

The terms life assurance and life insurance are used interchangeably and mean the same thing. Some places and locations use one or the other. Life assurance or insurance, depending on where you are from, is an insurance that takes care of families or guardians in case of the death of the policy holder.



The policy, or agreement between the life insurance scheme and uninsured individual, is preferably acquired at a young and healthy age. The now insured person receives benefits that are paid out to a beneficiary upon their death. The policy remains the possession of the holder as long as they make payments to the insurance company usually monthly and referred to as a premium.

There are many types of life assurance policies. Some are limited, while some are open. Some pertain to certain types of illnesses, causes of death or only to accidental deaths. For this reason it is especially important to understand the stipulations surrounding a life assurance policy and know what type of incident may affect how much money goes to the beneficiary.

The best type of policy to take are the ones that cover all expenses such as the arrangements and proceedings surrounding death or burial. Additional expenses may include money or benefits that will take care of the beneficiary or beneficiaries throughout their rest of their natural life. Policies are divided by its value and range from values below or around $10,000.00 to above or around $500,000.00. Your premium will be high or low depending on that value. The amount is paid monthly and may increase as time passes. Some life insurance companies offer a premium that will not increase at any time.

Before choosing a policy it is important to know all the details, conditions and fine print associated with a policy. It is especially important to find a policy that will fit your lifestyle, your needs and your budget. Many different companies have many different types of life assurance policies with many features, options and conditions that need to be met. It is not practical to try and understand all the fancy lingo and terms in some policy forms but it is important to understand its gist or purpose. Your insurance agent can help you to better understand what the policy entails and clear up any additional or hidden information. Most life assurance policies can be added to existing policies to make payment easier and more secure.

Receive the appropriate information is simple as there are many different ways to gain knowledge in this day and age. If you are being offered a policy through your job or employer then you can seek further information from your boss himself. Speak with others who have purchased life insurance policies for themselves to find out the advantages and disadvantages of certain types firsthand. The internet is also very useful in gathering information and can be used to research a company or insurance plan.

Life insurance or assurance is a very important option to think about as we age. It helps to provide for our loved ones even after we have passed on.