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Life Assurance - Cash Out

Hello :)

I was wondering if anyone could help me; I reccently got a new job and today I recieved the contract.

The benefits mentioned that I had life assurances x 4 my yearly salary (my salary is just above £19,000 a year). I understand the basic foundations of life assurance opposed to life insurance (assurance is when I die where as insurance is if I die to certain marks, a very simplised term, I apologise)

My contract also mentioned as one of my benefits, I could 'sell' a minimum of one of my life assurance back to the company. Could someone please explain to me how this works? Like what the concept means and how it would be broken down as I can't imagine they would be pay out £19,000 in one go.

Comments

  • TSx
    TSx Posts: 868 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Your company will pay a premium to insure you x4 your salary.

    If you opt to reduce your cover to, for example, 2x your salary then your company won’t be paying the premium and you will receive this on top of your salary.

    When I worked somewhere that did this, the ‘buy back’ was about 50p a month
  • TSx wrote: »
    Your company will pay a premium to insure you x4 your salary.

    If you opt to reduce your cover to, for example, 2x your salary then your company won’t be paying the premium and you will receive this on top of your salary.

    When I worked somewhere that did this, the ‘buy back’ was about 50p a month

    Thank you for the reply! :)

    So if I wish to 'sell' two of the assurances, I would recieve whatever the premium is (x2) and then I would have the option to buy back?
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