Life Assurance

Life Assurance covers death retirement, school fees, investment schemes etc.  It is concerned with risks that will occur.  There are 3 types of policies offered: Whole Life Assurance Term Assurance Endowment Assurance

Whole Life Assurance

On the death of the insured person a lump sum is paid to the person named on the policy e.g. a husband and wife may insure each other’s lives so that payment is made to the surviving spouse on the other’s death.

Term Assurance (Temporary assurance)

This provides life cover to the holder for an agreed period of time after which the cover ceases e.g. payment may be made to the dependants of the policy holder in the event of his death before a certain age.  Parents often take out this cover while they have young children or while they still have a mortgage to pay.

Endowment Assurance

This is where an insurance company will pay out a lump sum when a person reaches a certain age or dies before reaching this age.  Either way the insurance company will have to pay out.  It is therefore dearer than other forms of insurance.  Endowment insurance is a useful way of saving while at the same time insuring your life.