Life Assurance or Life Cover- if you live abroad

Life cover is essential, especially if you have family. You can start whenever you want but its best to seek which cover is best for you.

There are basically two types of life assurance - investment-type and term insurance. Investment-type insurance includes policies that pay out on a certain date or when you die, whichever comes first. Term insurance pays a lump sum if you die before a set date.

Term and Investment - Type Insurances Explained

Term Life Insurance

Term insurance guarantees to pay out a set amount if you die within a stated period of time (the 'term'), but doesn't pay out anything if you survive the term. It is usually cheaper than Investment-type insurance, with the monthly payments generally being a lot lower.

You choose the term for which you are insured. It could be, for example, the number of years left on your mortgage, the number of years until your children are financially independent or the period up to the date when you would like to retire.

Term insurance is sometimes called 'protection only' insurance.

Investment-Type Life Insurance

With investment-type life insurance you generally contribute monthly to a policy. Your money is invested in a fund and so your return depends on how well the investments in the insurance fund have performed. Some policies, called 'whole of life insurance', only pay out when you die, whilst others pay out a lump sum on death or on a specified date.

What Are The Options In Investment-Type Life Assurance Policies?

Investment-type life insurance policies that pay out both ways are:

• with profit bonds
• unit-linked bonds
• income and growth bonds
• endowment policies (generally taken out to protect mortgages, but not so popular of late)
• maximum investment plans
• other life insurance which builds up a value that you can cash in

Facts About Investment-Type Life Assurance Policies

Points to consider when choosing investment-type life cover:

• with profit bonds
• what payments, mostly monthly, that you can afford
• the probable return at the end
• the risk - shares can rise as well as fall
• shares can rise as well as fall flexibility – what happens if you miss a payment, want to cancel the policy or switch to a different one terms
• terms - conditions or restrictions

Life Protection and Life Cover Advisor

Not all independent financial advice firms have the knowledge surrounding life protection. To ensure our clients get the maximum out of our advice we have financial advisors who specialise in that market. This guarantees that the advice and any financial products relating to life protection is unbias and surrounded by impartiality. Contact us to arrange a visit or chat

 

For Your Protection

The Right Advice

Investment type life insurance can be expensive compared with traditional investments. With so many policies available, and at a time when people are nervous about investing their hard-earned money, it takes a professional to find the life assurance to suit the individual and to make the options clear. When you ask Peter Male for insurance advice, we consider your individual needs and only recommend a product if we think it is suitable. If you buy without advice you have less protection if the policy turns out to be unsuitable.

Life Protection and Life Cover Advisor

Not all independent financial advice firms have the knowledge surrounding life protection. To ensure our clients get the maximum out of our advice we have financial advisors who specialise in that market. This guarantees that the advice and any financial products relating to life protection is unbias and surrounded by impartiality. Contact us to arrange a visit or chat