Level Term Assurance???

Swalit

Hi all, I am totally new to all of this, so hope you can help. I am going to get level term assurance for me and my family, I know the basics about it but wanted to know a few things that the websites dont seem to tell you.

Once the 40 years is over from paying your premiums and say you have not died what happens? DO you get your money Back? DO you get the payout you have been paying the premiums for? What happens as it seems a waste of time if you dont die before the cover ends and dont get any form of payout??

CONFUSED!!!!!!!!!!!!!!!!

dunstonh

DO you get your money Back? DO you get the payout you have been paying the premiums for?

no. its not an endowment policy. Its level term assurance.

What happens as it seems a waste of time if you dont die before the cover ends and dont get any form of payout??

Thats what insurance is about. You dont get your car insurance or your house insurance premiums back or put into an investment if you dont claim. Life assurance is no different.

40 years is a long term for family protection. Are you sure thats required? If you are concerned about cost, then you could consider family income benefit which is cheaper than level term assurance or decreasing term assurance for liabilities that have a decreasing requirement for cover.

OshayAway

Swalit wrote: »

Once the 40 years is over from paying your premiums and say you have not died what happens?

That's the bonus... you're STILL ALIVE! :j

_Andy_

Swalit wrote: »

What happens as it seems a waste of time if you dont die before the cover ends and dont get any form of payout??

CONFUSED!!!!!!!!!!!!!!!!

By the same logic, you could say that any insurance is a 'waste of time' but of course it isn't if you need to claim.

TEDDYRUKSPIN

Swalit wrote: »

Hi all, I am totally new to all of this, so hope you can help. I am going to get level term assurance for me and my family, I know the basics about it but wanted to know a few things that the websites dont seem to tell you.

Once the 40 years is over from paying your premiums and say you have not died what happens? DO you get your money Back? DO you get the payout you have been paying the premiums for? What happens as it seems a waste of time if you dont die before the cover ends and dont get any form of payout??

CONFUSED!!!!!!!!!!!!!!!!

All of the above have answered your question. Term insurances do not have any payout once the term has expired.

Just to note, term assurances i.e. level term are actually the cheapest form of life assurances on offer! Whole of life are so expensive and also endowments. Besides the measly payout for surrendering whole of life or endowments is'nt actually alot.

For some reason, mainly the south asian population tend to be tricked by certain advisors on purchasing whole of life plans. The main reason being that they always want something back for their money. But what they fail to understand, is that in the long run these whole of life packages are expensive to run in the long run. They are usually used for funeral costs.

boy76

It sounds like you need to speak to an Adviser, if your not sure what you need you could be buying the wrong product for your needs.