The Difference Between Life Assurance & Life Insurance

You’re looking in protection for your family but you’re unsure of what you need.  You may be unsure of the differences between life insurance and life assurance, below we have explained life assurance so that you can have peace of mind when deciding upon what you need.

According to the World English Dictionary, Life assurance is:

"Also called: life insurance a form of insurance providing for the payment of a specified sum to a named beneficiary on the death of the policyholder. "

Life assurance is just another name for life insurance. What type of life insurance do you need? There are four main types of life insurance:

• Life Insurance
• Total & Permanent Disablement (TPD) Insurance
• Trauma Insurance
• Income Protection Insurance

Life Insurance: sometimes known as death cover, or term life insurance, will pay out an agreed lump sum of money. This is generally in the event of your death, but can be paid out earlier – only upon diagnosis of a terminal illness.

TPD Insurance: will pay out an agreed lump sum of money in the event you become totally and permanently disabled. The definition will generally fall under ‘own occupation’ or ‘any occupation’.

Trauma Insurance: also known as critical illness insurance will pay out an agreed lump sum of money in the event you suffer from a medical condition covered by your policy. The number and types of conditions covered generally vary from insurer to insurer.

Income Protection Insurance: pays up to 75% of your monthly salary if you are unable to work due to any illness or injury. It is very broad coverage in the fact there are no set conditions you need to suffer from in order to claim. All premiums are 100% tax deductible.

In order for you to have assurance about you insurance cover it is best to speak to a qualified insurance adviser who can help arrange the best cover for you.

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