by rjames » Wed Dec 05, 2007 02:06 pm
For those who are just learning this thing, it is really an interesting topic. Life Assurance is policy that gives the beneficiaries a lump sum when the payee died of whatever cause. It is like you are investing while you are being insured. It seems like its hard to understand (well most people do so I would like to explain it as simple as possible).
Life Insurance is a policy that will cover death due to events that might happen like accidents, natural disasters, or even murder.
Well, on the other hand, Life Assurance is broader than insurance. Just like I said on the 1st paragraph, Life Assurance is Life Insurance + Investment. Its like you are just investing your money and at the same making sure that you are insured. By the time you go rest, for whatever reason, the company will pay the money equivalent to the life insurance policy plus the interest that you have gained through the years that have passed. It seems like this is a better option but I think there are some negatives in here in which I don't know yet. That is why I opened up this thing.
Hope someone of better understanding could explain this more clearly.
Life Insurance is a policy that will cover death due to events that might happen like accidents, natural disasters, or even murder.
Well, on the other hand, Life Assurance is broader than insurance. Just like I said on the 1st paragraph, Life Assurance is Life Insurance + Investment. Its like you are just investing your money and at the same making sure that you are insured. By the time you go rest, for whatever reason, the company will pay the money equivalent to the life insurance policy plus the interest that you have gained through the years that have passed. It seems like this is a better option but I think there are some negatives in here in which I don't know yet. That is why I opened up this thing.
Hope someone of better understanding could explain this more clearly.
Posted: Thu Dec 06, 2007 10:12 am Post Subject:
Hey, are you talking about the whole life plan with the cash value benefit? This type of policy accumulates ‘cash value' with time, along with insuring the policy holder, which can be utilizes at the time of need.
Posted: Thu Dec 06, 2007 10:55 am Post Subject:
Great info rjames. Life insurances with the investment options are the need of the time. People buy life insurance for security and this need will always exist but at the same time people want their money to grow. Life insurance policy with the cash value option is the right choice for them.
This is the right type of investment option for the moderate risk taking investors who want their money to grow but at the same time doesn't want to put it at risk by investing in the volatile market. Guaranteed return life policies will earn both the dividend and peace-of-mind for them.
Posted: Thu Dec 06, 2007 11:16 am Post Subject:
Thanks rjames for discussing this topic. Still many people don't consider life insurance as a vehicle of investment. Your topic will definitely make them think over it.
Well, life policies with investment options are quite popular in the US market. These are created to keep pace with the changing demands of the society. As someone has mentioned above, people want to see their money to grow.
Universal life policy, variable life policy, variable universal life policy; are few such examples. All these are designed to meet one's individual needs. We are expecting to see even more diversified products in the future.
go_independent27
Posted: Fri Dec 07, 2007 01:38 am Post Subject:
Life insurance policies with investment options are hitting the whole world and they're a really nice option to consider. Other countries are yet to see the diversity of the options offered on the US market though.
Posted: Sun Dec 09, 2007 06:00 am Post Subject:
If you live and are doing business in the UK, you are absolutely right.
Life Insurance is basically term coverage while Life Assurance is what we in the US call permanent coverage (whole life and it's ilk)
In the American marketplace we don't have Life Assurance and using that terminology just tends to confuse people. In my website, I cover the investment aspects of life insurance rather extensively. I've made a pretty good living prosecuting agents who've sold life insurance as investments.
That's a fine line too many agents cross.
Happy holidays,
Mark
Posted: Sun Dec 09, 2007 11:44 am Post Subject:
great posts, I am sure this will clear up the confusion for alot of people. Sometimes us layman don't understand. Even if we read the fine print it is hard to understand. good job, thanks for a great post.
Posted: Sun Dec 23, 2007 02:24 pm Post Subject:
thanks for the post man....
it was really helpful.....
i will advice people to read and benefit from it
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