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Life Insurance / Life Assurance



Are you in the Edinburgh area and need to know more about life insurance or life assurance?

Life insurance premiums have been steadily decreasing for the last few years so if you already have a policy, it may be the case that you are over-paying. It may be worth asking us to quote for your needs, it could well be cheaper than you think.

There are several different types of life insurance, but first, we should deal with the difference between Insurance and assurance. If you are insurance an event that will definitely happen such as death then technically, this is known as Life Assurance. In some policies you can insure for a set period of time - a period in which you might not die. This is technically known as Life Insurance.

Term Insurance

Term insurance, as in the name, will cover you in the event of your death for a specified period of time. If death occurs within the policy term then the insurer will pay out the benefit. If you die after the term, it doesn't. There are two types of term insurance, Level Term and Decreasing Term which one chosen determining the amount of benefit payable on death. Term assurance is fairly cheap to take out but has no cash in value. Decreasing term insurance is mostly used to cover repayment mortgages where the amount decreases in line with the amount of mortgage over the term of the policy.

The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

Whole of Life Assurance

A whole of Life Assurance policy is to cover the entirety of the policyholders life and matures on the policy holder's death at which time the benefit is provided to their beneficiaries or a trust if that was the way the policyholder designed it. The amount that is paid out will vary and is dependent on the contributions that have been made as premiums are often made to an investment fund. Reviews are conducted from time to time to ensure that the performance of the investment is in line with the expected benefit.

The value investments and the income from them may go down. You may not get back the original amount invested. The plan may have no cash in value at any time.

Nowadays, critical illness cover can also be included in the policy to cover you in the event of contracting a serious illness.

If the policy has no investment element then it will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

The policy may not cover all the definitions of a critical illness. For definitions please refer to the key features and policy document.

The value of investments and the income from them may go down. You may not get back the original amount invested (only include if there is an investment element in the policy you are talking about).

There are many different variations on these types of assurance, please do not hesitate to contact us should you have any questions or advice. We have been advising on Life Insurance in Edinburgh for many years.

Call us today on 0131 620 6202 or click here and we will call you.

 


Orchard Independent Ltd is an appointed representative of TenetConnect Services Ltd which is authorised and regulated by the Financial Conduct Authority. TenetConnect Services Ltd is entered on the Financial Services Register (http://www.fca.org.uk/register) under 150643.

Orchard Independent Ltd.  12 Dalziel Place, Edinburgh, EH7 5TR. Telephone - 0131 620 6202.

Registered in Scotland - Company No. SC355263

The guidance and/or advice contained within this website is/are subject to the UK regulatory regime and is/are therefore primarily targeted at consumers based in the UK.

Director - Jon Carter