21 Nov 2018

Online Life Insurance Quotes

Life Assurance UK

Is There a Difference Between Assurance & Insurance ?

Most people do not understand the important difference between assurance and insurance in the UK but it’s quite simple.

Life Assurance in the UK

With life assurance in the UK you have an important investment element. The policy joins a guaranteed insured sum with a none guaranteed investment, the value of the investment being directly related to the size of the guaranteed sum on your policy, the number of years the policy has been in force and assurance company’s investment performance.

If you were to die during a policies term, the policy pays out the guaranteed sum ( just as with life insurance ) or the value of the annual investment bonuses that had been added to the policy by the assurance company to date, whichever is the larger.

Therefore, as the years go by the policy increases in value as the bonuses attached to it, build up.

However, if you survive to the end of the policy, your investment value is increased. You then get the annual bonuses plus a terminal bonus.

When a UK life insurance policy has earned an investment value via its annual bonuses, you can cash it in with the assurance company. However, most people get a far higher price for their policy by selling it to a specialist investment broker. You will find a number of investment brokers on the internet who wish to buy life assurance policies.

In recent years, the investment returns on UK life assurance policies have dropped very significantly reflecting investment conditions. Furthermore, most assurance companies have placed penalties for cashing in policies early. This has similarly reduced the resale value for uk life assurance policies.

UK Life Insurance

With UK life insurance the assurance company insures you for a specific period of time. Then if you die whilst the policy is in force, the assurance company pays the claim.

However, if you survive to the end of the term, the policy is finished and has no residual value whatsoever. Even whilst the policy is in force it only has any value if you have a claim – in that context it’s just like your home insurance.

Best Life Insurance Quotes is a trading style for website purposes of Go Direct UK Ltd.

Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority Registered in England & Wales Company 456600

UK Life Assurance - Best UK Life Insurance Quotes