Assurance Plans Guideline

Since the term “Life Assurance” has been coined, I have always assumed that both Life Insurance and Life Assurance are names for the same form of insurance. But if you belong to my category don’t be heart broken because various financial wiz kids have got it wrong too. Life Insurance and Life Assurance perform two different financial roles and are east to west when it comes to costs.

But before we go in the nuances of what are the main differences between the above two forms i.e. Insurance and Assurance. Let’s just find out why one needs to get “assured”?

In our youth, planning for our future can be a tedious job plus a time consuming burden. Considering from where one would get the time to shop for such products when one is trying to keep up with the nitty-gritty of work and home life. But even if all things in life were predictable, death for sure cannot be predicted. But if the unthinkable would happen, do you see your spouse and dependants financially secure and healthy for the rest of their life? If not, then a life assurance policy is a must.

Life Insurance has been defined by dictionary.com as an ‘Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or she lives beyond a certain age.’

But Life Assurance on the other hand is different. Life Assurance is a hybrid combination of insurance and investment. A ‘Life Assurance policy’ pays out a sum of money equal to the higher of either a minimum underwritten by the policy’s insurance clause or its investment valuation. Thus, making the value of your investment reliant on the insurance company’s performance with respect to investment and growth.

Each year the insurance company adds an annual bonus to the guaranteed value of your assurance policy and there is a terminal bonus at the end of your term. Therefore, as years go by your assurance policy increases in value as investment bonuses keep adding on. But unlike life insurance if you were to die during the life assurance’s term, the insurance company would pay out the higher of either the guaranteed minimum sum or the accumulated value of the annual investment bonuses.

Webmaster
Life Insurance Vs Life Assurance

Share This

Shortage of money before pay day- this is very natural phenomenon these days. As daily expenditures have hiked up, thus to crop up this situation we need to spend more. So sometimes we may be short off cash before our pay day. That time, we become so confused, we can not decide from where we will arrange cash. Now you can overcome this situation. Why? To combat with sudden monetary crisis, payday advance loans are also available in loan market.

Payday Advance Loans, synonymous of “Cash Advance”, “Paycheck loan”, “Check Loans” and “Payroll Advance Loans”, are mainly short term basis loans, available for 1-2 weeks. The main function of these loans is to bridge the short time monetary gap.

There are few criteria that need to be fulfilled by borrowers while availing for a payday advance loan. These are like

Borrowers should be employee

They must have regular income and it could be at least ₤1,000

The age limit is 18 years

Borrowers should be a holder of a current and active checking account.

At the same time, borrowers should keep in their mind that their income will decide how much they can borrow as payday advance loans.

However, as a first time borrower one can borrow up to ₤500 as payday advance loans. But after returning the amount on time, next time if he wants to avail another payday advance loan, then he can borrow above ₤500.

The advantageous attribute of payday advance loan is its easy availability. The application process of these loans hardly takes 15-30 minutes and within 24 hours the cash is credited to the borrower’s account. So, not only advance cash but the assurance of swift availability is also offered with these loans. Here one point needs to mention. As the amount is credited to the borrower’s account on next working day, so it is better to apply for a payday advance loan between Monday to Thursday.

Normally borrowers need to pay ₤15 to ₤30 on per ₤100 borrowed. So if any one wants to borrow ₤100 as payday advance loans, then he will have to repay anything between ₤115 to ₤130 on the stipulated date. The APR on payday advance loans could hike up to 391%. These loans are repayable within 14-18 days. But this term can be expanded till one month. But in that case, borrowers may have to pay some extra fees.

Payday advance loans are a true benediction for short term monetary crisis. All sorts of borrowers including those have poor credit score can defeat their short term cash crisis easily with payday advance loans.

Tim Kelly is an expert in finance having completed his LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. To Find Payday Loans, Payday Advance Loans, Online Payday Loans, No Fax Payday Loans in UK visit http://www.bestpaydayloans.co.uk

Share This

People spend a lot of money on complicated financial products and it is sometimes difficult to keep track of what products perform what tasks. Many people are not aware of all the financial products that are available or they only know of them vaguely. They may not know how much they cost or the potential benefits they offer. How can consumers make informed decisions on what products they would be willing to buy if they do not have this basic information? This problem can often lead to consumers buying unsuitable of overpriced products simply because they feel they should have some financial protections available but don’t have the details to make an informed choice.

One of the common questions many consumers have is regarding the difference between insurance policies and assurance policies. Put simply, insurance policies cover the costs of an event that might happen while assurance policies will pay out on the occurrence of an event that is certain to happen. Insurance policies only last for a specific period of time. If the event occurs within that time, they pay out, otherwise they are finished. Therefore, if no claim can be made within the term of the policy, they have no remaining value.

Guaranteed Payout

An assurance policy is different. Assurance policies always pay out. For example, a life assurance policy will generally pay out upon death or upon reaching the age of 65. How does this policy work? Well, they combine two elements; an insurance element, which will pay out if, the person dies early. This will then be used to pay for the funeral or support his family. But then there is another payment made every year and this is the investment portion. The insurance company invests this part of the premium on behalf of the policyholder and when they reach the age of 65, they pay this out. Life assurance policies are therefore often used both as a method of life insurance and as a method of saving for retirement.

Do You Need Money Now?

If you wish to cash in the investment portion of a life assurance policy early this is generally possible. However, there will usually be hefty penalties added to this so it is unadvisable to cash in early if you don’t have to. The distinction between insurance and assurance is also becoming more blurred as more companies offer both types of policy or add features of one type of policy to their other type to make them more attractive. The distinction is still important so that you know what to ask for and know what kinds of facilities are available for insuring your life and providing for your future.

Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of insurance in the UK. If you found this article interesting you may find more articles of the same nature in the insurance guide located on site.

Share This