Life INsurance or ASsurance??

greatgazza

Hi all

As a single mum to an only child with no other parent to take over in the event of anything happening to me, I want to make sure my little boy isn't left with a whole heap of trouble when I go.

Up until now I have put it off due to not having much disposable income each month to actually pay the monthly premiums but I now think it is imperative I put something in place.... but... what?? Insurance or assurance? I don't really have the funds to pay an IFA so wondering what others' thoughts on here are about the differences? And what is wise to get/look for when getting a policy?

Thanks very much.

GG xx

kingstreet

There is no difference.

Traditionalists like me call it assurance, newbies and Americans call it insurance.

A policy with a fixed sum assured over a fixed period of time is a term assurance. This would provide a lump sum on death. Cheaper would be family income benefit, where the benefit is paid as an annual income until the end of the term. As this is effectively decreasing cover, it is cheaper.

Protection can still pay a commission, so you may not have to pay a fee for protection and trust advice.

dunstonh

Insurance or assurance?

As mentioned above, there is some difference between the two but over the years, the terminology has become muddied. Partly through dumbing down marketing, partly through Americanisation. Partly through misunderstanding.

Assurance covers an event that will happen. Insurance covers an event that could happen.

over 50s plans should use insurance as they have many clauses. Most other plans should use Assurance. But they mix and match so dont worry about it.

There are around 13 different types of life assurance. Although only 4 are still active in the mainstream.

greatgazza

thanks.

I thought there was a difference. My dad worked in assurance and said life insurance was a con and he could sell assurance with a clear conscience as death was assured.

It also says there are some here:

http://www.uswitch.com/life-insurance/guides/difference-between-life-insurance-and-life-assurance/

not heard of family income benefit, will look that up.

Also, I don't understand what this means:

Protection can still pay a commission, so you may not have to pay a fee for protection and trust advice.

Do you happen to know the differences between the 4 that are still active in the mainstream? Or how would I find out?

Thanks again

ACG

If you speak to a broker and they set up the policy the insurance company pays commission to the broker. That means you are unlikely to have to pay for the advice in terms of a fee.