As the pandemic has increased awareness of our vulnerability, more and more people are looking for insurance that will take care of our families after we’re gone.
Some people may start to consider life insurance as they are near the end of their working lives to provide a legacy for those they love, or at least ensure that the people closest to them don’t have financial worries.
Young people may also see the advantages of buying life insurance policies too. Triggers such as starting a family, buying a house or reaching a milestone birthday help young people to see the benefits of having life insurance.
Life Insurance or Life Assurance?
Life insurance and life assurance are two forms of protection which are designed to pay out after the policyholder passes away.
These terms are often used interchangeably, however there are a few important differences in how they work.
Life insurance pays out a tax-free sum if you die during the term of the policy. These policies cover you for a specific term or amount of time, for example for the duration of your mortgage.
Life assurance likewise pays out a tax-free sum when you die, however it usually covers the policyholder for their entire life. This is why it’s also known as ‘whole of life cover’.
Each has different benefits so the choice between them depends on your circumstances.
Though peace of mind is probably one of the main benefits of having life insurance and a huge advantage to have for some.
Our experts can help you weigh up what’s best for you and your loved ones.