What is Life Assurance?
To put it simply, life assurance is an insurance policy which will pay out upon the death of the policy holder to the nominated beneficiaries.
Life assurance however comes in many flavours and sizes so it is important to identify your specific requirements. For example although traditionally life insurance pay out upon death of the policy holder you can get life assurance that pays out based on life events.
What are life events?
Life events is a fancy name for something not nice happening, such as the policy holder becoming redundant, critically ill, disabled or as explained above, if they die. Some common life events include:
- Disability
- Critical Illness
- Death
- Redundancy
What Does Life Assurance Do?
Depending on the terms of the assurance, life assurance will pay out a lump sum of money to the nominated beneficiaries, the purpose of these monies is to cover any outstanding financial obligations that may exist and to provide for the policy holders dependants (usually the nominated beneficiaries)