Understanding Life Insurance

Unless you’re in the insurance business, knowing what all the different insurance policies can cover can be quite complicated. One that people often are confused about is the difference between life insurance and life assurance. There are so many different policies on the market, and you might be drawn to cheaper premiums, you have to check out all the details so that you know what you’d qualify and when regarding payouts from the insurance company.One of the best ways to do this is to talk about your financial situation with a financial adviser. Many insurance companies offer this advisory service as well as selling insurance policies.One thing to understand is the fundamental difference between life insurance and life assurance.

Life insurance will ensure you for a set length of time. If you were to pass away during the policy period, the insurance company pays the claim to your partner or children. But if you outlive the policy period you will not receive anything. Like home insurance, the life insurance policy will only have a value attached to it if you make it a claim (through your death).

Life Insurance debts or costs

It’s useful to have life insurance in place if you have debts or costs that would need to be paid after your death – for example, a mortgage that runs for 25 years should be matched with a life insurance policy for the same time. That way, should you die, your family would not have to pay off the mortgage; the insurance company would.Life assurance works differently.

There is an investment element attached to it. Life assurance puts a guaranteed insured sum together with a non-guaranteed investment, and the investment value relates to the size of the guaranteed amount in your policy, as well as the time you have the policy in force and how the investment performs. If you die during the term of the policy, the payout equals the value of the guaranteed amount or is the same with the value of the annual investment bonuses up to that date, whichever is the greater.

If you survive the policy, the value is increased as you get a terminal bonus on top of the annual bonuses.For most people, life insurance will be more appropriate than life assurance. As with all insurance, policies prices vary enormously, as do the conditions attached to them.

How To Save Money On Your Home Insurance Policy

With different events happening in your life, it’s the time to take a look at your personal finances and see where you can make savings in order to ensure un-preventing events don’t leave a gaping hole in your pocket for the first few months of the year.

Save money on home insuranceWe all know about the importance of saving money on our electricity bills, turning down the heating when we can, and shopping around to find the cheapest deal, but not as many consumers seem to be quite as aware of how to save some precious cash on their home insurance quotes. Luckily, it isn’t as tricky as you may think to save a few pennies on your home insurance policy.

Tips to Follow

Simply follow these straightforward tips and you’ll be on the road to financial freedom as the winter months progress before you know it. Firstly, if you’re looking for both buildings and contents insurance, make sure you buy them as a joint policy from the same company. You’re likely to make significant savings this way. Secondly, think outside the box regarding saving money on your premium. Make your home as secure as possible, join a Neighbourhood Watch scheme, or Install a visible burglar alarm. You can also consider fitting bars on your windows if you live on the ground floor of a flat in a slightly dodgy area, and fitfully approved locks.

insurance by planning for futureFire risk can also be reduced significantly by fitting smoke alarms and testing the batteries regularly. Thirdly, always shop around before making a purchase, but ensure you’re comparing like for like policies as this isn’t always immediately apparent. Check what deals specific companies are offering as many will offer significant discounts for purchasing online or for buying buildings and home contents insurance together at the same time.Lastly, remember that the fewer claims you make, the lower your future premium, so think twice before making a claim when you don’t have to.