If I had £1 for everytime I was asked this question, well I would at least have £100 thats for sure.
I have worked with many financial advisers over the years who probably don't even know the answer to this question. I have sat next to people who have just said 'There is no difference, there is just 2 terms for the same thing'. - Lazy answer.
I'm not sure if anyone here has ever asked themselves this question, but if you're still reading (Thank you) - then the answer is below:
Life Assurance - This sort of plan will cover you for the rest of your life. Usually as part of a policy called a 'whole of life' plan. It does exactly what it says on the tin.
They tend to be more expensive as the risk of the insurance provider having to pay out is far greater.
Considered to be more of an investment as it offers a guarantee to the policy holders beneficiaries.
These plans are better suited for the older generation who are looking to leave some money behind, or to make sure the money they leave isn't all lost to inheritence tax.
Life Insurance - This plan covers you for a set term. So when that policy finishes, you will need to reapply if necessary.
Can be tailored to specific needs, for example mortgage lengths and childrens ages.
These plans are better suited to new home owners and new parents as it allows them the peace of mind that whatever they love the most will be cared for, even after they have passed away.
Well that's that. I hope you found that useful at least!
If you need any help working out what plans will better suit you and your family, then please get in touch.
Dan
Long River Finance
