Family Protection Essex

life insurance and assurance

The average man in the street assumes that Life Insurance and Life Assurance are names for the same form of insurance.

Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum.

if you survive to the end of the term, the policy is finished and has no residual value whatsoever. it only has a value if there is a claim.

Life Assurance is different. It is a mix of investment and insurance.

A Life Assurance policy pays out a sum equal to the higher of either a guaranteed minimum underwritten by the policy’s insurance provisions or its investment valuation. The value of the investment element is then reliant on the insurance company’s investment performance and length of time you have been paying the premiums.

Each year the insurance company adds an annual bonus to the guaranteed value of your life assurance policy and there is normally an extra “terminal bonus” at the end.

Therefore, as the years go by your life assurance policy increases in value as the investment bonuses accumulate.

If you were to die during a Life Assurance policy’s term, the policy pays out the higher of either the guaranteed minimum sum or the accumulated value of the annual investment bonuses. However, if you are still living when the policy terminates, you usually get a bigger payout.

income protection

Ill health and unemployment are worrying enough without suffering the additional stress of inadequate income.

Whether you are single, or the family breadwinner, Income Protection can be a cost effective way to help relieve the financial burden while you get your life back on track.

In a few simple steps, we can help you understand the risk and ways that we can help you protect against them.

https://willowfinancial.riskreality.co.uk/