Most people think that life assurance and insurance are one and the same, just with different names. However, this is not the case at all. Each one has a very different role and different advantages and disadvantages. So be sure to get the right one, the one that is actually the best option for you.
Life insurance is for a particular period of time. Only if you pass away during this period will the insurance company pay out the agreed upon amount of money. The only time you get the benefit of a life insurance policy is if you claim. You can also get the best life assurance service online.
Life assurance on the other hand is both an investment and insurance. The policy will pay out a value that is equal to an agreed upon amount or the amount you have invested in it, whichever is the highest in value at the time of the claim.
The amount you have invested is dependent on how long you have had the policy and been paying premiums and the insurance company's performance.
Should you pass away whilst the policy is still in effect, the insurance company pays out the higher value, if however, you outlive the policy, you will often get paid out even more due to being awarded a terminal bonus (explained later).
Each year that the policy is in effect, the insurance company will add a bonus amount to the value of your policy, they will also often add an additional bonus at the end of the policy.
This means that your life assurance policy increases each year. The amount that you are awarded is determined by the insurance company's performance in the investment market. These bonuses can either be cashed in with the insurance company or sold to a specialist investment broker.