Life Assurance


Most of us don’t want to think about what would happen to those we leave behind should the inevitable suddenly happen. But for those who do want to safeguard their loved ones’ futures, there is life insurance. Despite the grim headlines of late, life cover costs have fallen significantly in thew past few years, as a price war has broken out between insurers all keen to be on top of the charts of the price comparison websites. However, the headline premium rates can be misleading and only those in perfect health are benefiting from the cheapest quotes. Insurers are desperate to get to the top of price comparison sites, but they are subsidising low premiums for those in perfect health by charging those with less than perfect health much more. When you buy life assurance you are simply arranging for a sum of money to be paid out on your death. Policies may pay a lump sum or a regular series of smaller sums; payout may be guaranteed or may be on offer for only a limited period of time; both premium and payout may be fixed or may vary.  Life assurance can be divided into two basic types - policies that offer protection only and those that have an investment link. Protection-only policies, usually described as “term assurance”, pay out if you die within a specified period but otherwise pay nothing. This is usually the cheapest way to provide financial protection for your family in the event of your death. Investment-linked life assurance includes endowment policies and whole of life policies. As well as paying out on death these build up an investment value that may be cashed in during your lifetime. Many types of pension scheme such as personal pensions including stakeholder schemes also count as investment-type life assurance. Providers of life assurance policies must be authorised by the Financial Conduct Authority (FCA). What Are Premiums Based On ?
Term or Whole Life ?
What Cover Do I need ?