Life is full of unexpected twists and turns, which is why it’s essential to plan for the unexpected. This is where life assurance comes into play. It helps in safeguarding your family and future earnings in the event of unforeseen circumstances. Let’s find out why it is so significant in planning your finances.
What does life assurance mean, and how does it differ from life insurance?
Let’s begin with the basics and know what a life assurance policy is. Life assurance is a financial protection guaranteed by the insurance company to pay out whenever you die. It covers your whole life and is also commonly regarded as ‘whole of life’ or life-long cover. Many times, the term life assurance is used interchangeably with life insurance; however, there is a difference between the two. Unlike life assurance, which protects against death, an event which will happen eventually, life insurance protects for a fixed term. It means, when you take a life assurance policy, the payment will be made at the end of the policy when the person assured dies. Life insurance policies provide financial protection for a specific term and an event that may or may not happen. Life insurance policies in Ireland also cover many different kinds of protection policies.
Why do I need a life assurance policy?
A life assurance policy is a way to provide protection to your loved ones after you die. None of us wants our family to face financial challenges when we die. A life assurance policy ensures your family won’t be left grappling with financial burdens at the time of your death. A life assurance family policy provides financial support for many things, such as
- Living expenses
- Household bills
- Funeral costs
- Mortgage repayments
- Outstanding debts
- Childcare support
- Retirement savings
- Estate planning
What are the features of a life assurance policy?
- Financial security: It provides financial security to your loved ones at the time of your death
- Tax-efficient: Some of these plans cover the inheritance tax your family may be liable for if you die.
- Flexible: There are also optional features offered by most insurance providers for additional peace of mind.
- Considerate: A Lump sum payment is paid at the time of your death, which can be used to cover funeral expenses.
Choosing the best life insurance for you
There are a lot many options for insurance policies. It is always advisable to seek help from life assurance advisors in Tipperary to pick the best policy. Here are some factors to consider when comparing life assurance options in Tipperary
- Premiums: Are they fixed or variable? Can you afford them long-term?
- Coverage: Does it include serious illness cover? Are there exclusions?
- Term vs. Whole-of-Life: What’s better suited for your goals?
- Cash Value: Will the policy build value over time? Can you access it?
- Provider Reputation: Is the insurer financially stable and well-reviewed?
By carefully evaluating these factors, you can select a plan that meets your current needs and adapts to your future goals. Speaking to a life insurance advisor is the best way to decide the cover you need to best support your family if the unexpected happens. You can ask for free life insurance quotations from various service providers and compare them to choose the right policy.
Should I have life assurance?
Life assurance, life insurance and other such forms of policies provide financial protection to your family in unfortunate events. They should form an integral part of your financial planning. Policies like Life insurance, serious illness cover, and income protection are all different ways to financially protect your loved ones in challenging times.
Get a quote for life assurance today
If you are considering life assurance or insurance, Eolas Money advisors can help you in choosing the right policy that covers your concerns and challenges. Our team of life insurance advisors in Tipperary will discuss your options, assess your needs and find you the best cover at the most affordable price.
SOURCE URL: https://www.thetulsatimes.com/Understanding-Life-Assurance:-A-Foundation-for-Financial-Security
