Life Insurance or Assurance?

mattk_180

Hi Everyone,


Just in the process of buying my first home and wondered if someone can explain to me the different between life insurance and life assurance and which is the one you normally have to get when taking out a mortgage?


I get a certain level of life assurance through my employment and can add my partner to that, so unsure as whether I can just do that or whether I need to take out a life insurance policy.


Thanks in advance.

Credit-Crunched

mattk_180 wrote: »

Hi Everyone,


Just in the process of buying my first home and wondered if someone can explain to me the different between life insurance and life assurance and which is the one you normally have to get when taking out a mortgage?


I get a certain level of life assurance through my employment and can add my partner to that, so unsure as whether I can just do that or whether I need to take out a life insurance policy.


Thanks in advance.

Insurance is for a set term, Assurance is until death. You will need, insurance for your mortgage.

You could rely upon your employers cover, and inevitably it will be cheaper and discounted due to the buying power in bulk and also employer taking some of the costs.

However, if you move company, have your contractual benefits change, then the cover could be lost, or deemed inefficient.

This forum is not a place for advice, however, if you have a repayment mortgage, a decreasing term policy for the mortgage balance over the term of the mortgage is generally the best route to take. (assuming it is not Interest Only)

dunstonh

The Assurance and Insurance terminology has become muddied over the years. Americans use insurance where we would use Assurance. There has also been a dumbing down for marketing reasons.

Whilst CC has given the correct answer above, there is also another measure that some use that Assurance covers an event that will happen. Insurance covers an event that may happen. So, you often see term assurance policies using Assurance whilst some may use insurance.