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Term Life Assurance / Whole of Life

 It’s easy to get confused when deciding whether you need Life Insurance or Life Assurance after all, they are often used interchangeably. But these two forms of protection have distinct differences.

Life Assurance can also be known as ‘Whole of Life’ insurance.  This is because a Life Assurance policy is designed to cover you for your entire life as opposed to a Life Insurance policy which will cover you for a fixed period, such as your mortgage term.  This type of policy is more commonly used for Inheritance Tax Planning

By speaking to a member of the team, we can clearly explain the key differences in the two policies and be sure the right policy is recommended to you based on your circumstances.

First Time Buyers - Resolute Mortgages - Claydon, Ipswich

Life Assurance

A Life Assurance policy is going to pay out at some point as death is inevitable, and this type of policy is designed to cover you for your entire life.  When the lump sum is paid out, this is paid tax-free.

The policies can also include an element of investment.  This is not in every case and can only be sold through an adviser.

Life Insurance

With a life insurance policy, you have the option to choose the length of your policy.  This can be tailored to either your family or mortgage and only at point of claim, the policy will pay out a tax-free lump sum.

There is no element of investment when taking out a standard life insurance policy.

A full medical application needs to be completed and questions will be asked around your health, lifestyle and occupation.  If you fail to disclose any previous medical history, this could impact your ability to make a successful claim.

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