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Insurance or Assurance? Essential reading      before you look for a Joint Life Insurance Quote

Taking out Life Insurance (especially Joint Life Insurance) is a big decision, and you should understand your options before looking for a quote. Essentially the question is, do you need insurance or assurance?


What's the difference?

In a nutshell, assurance covers an event that is certain to happen, such as death, while insurance covers events that might happen, such as accident or theft.

Life assurance is there to give you confidence that when the inevitable happens, there are measures in place to protect your lifestyle and standard of living.  

Life insurance is very similar, but it usually covers a fixed term such as 30 years.  If the policyholder dies during the term, the policy pays out in full. If the term expires, the policy becomes null and void...  But because there's an element of chance, the quote is normally lower.

So which type of quote do you need?

It all depends.. Do you need your policy to pay out whenever you die, or only if you die within a certain timeframe?

If you have heavy financial commitments over a fixed term, you should at the very least get a quote for life insurance especially if you're the sole bread winner and have children or other financial dependents.

But if you want to prepare for the inevitable and make sure you leave a lump sum to your next of kin, you should be looking for a life assurance quote.

So what about joint cover?

If you're financially co-dependent, taking out joint life insurance is certainly a wise move. You can insure against losing one another, with different levels of cover set against each to reflect financial needs.

But choosing between joint life insurance and joint life assurance still depends on your circumstances.... Do you need your policy to pay out whenever the first death occurs, or just to cover a fixed term of financial co-dependency?

For more information on life cover, contact Howell Insurance on 01446 792505.  Advice is free, and so is our quote!  And we find the single or joint policy that is suitable for your personal circumstances.