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Life assurance
Life assurance is an insurance
policy which pays a lump sum to the named beneficiaries
when the insured person dies or reaches a certain age.
Life assurance is a term which is used predominately in
the UK however in Australia we call this type of cover
life insurance.
The term assurance does not relate to a possibility but
a certainty such as death. Where insurance is protection
against a possible hazard which may or may not occur,
life insurance is a policy that will pay a specified sum
of money to the estate of the insured or nominated
beneficiary upon the death of the life insured. In
exchange, the insured person agrees to make regular
payments of life insurance premiums (on a monthly or
quarterly basis) to the life insurance company.
The life insurance policy is
subject to strict limitations, exclusions, terms and
conditions and it is therefore extremely important for
you to fully understand the implications before you sign
the contract. For further information on
life
insurance please
visit our information articles.
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