Online Life Assurance

Can You Buy Online Life Assurance?

Life insurance and life assurance are often used interchangeably but these are two different products. They provide different forms of protection and as such also differ when it comes to rates. Because of the confusion between these two terms, a key issue is whether one can purchase online life assurance.

Insurance versus Assurance

To make certain that you are fully aware of what you need it is important that you know the difference between the two. Life insurance provides protection for a specified length of time and should you pass on within that period, your insurance provider pays out a sum of money to your beneficiaries. Should you survive at the end of the term, you receive no payout and the policy becomes null and void.

In contrast, life assurance is a type of investment that includes life cover as one of its benefits. If the policy holder dies within the policy’s term, his beneficiaries get either the assured sum or the cash value of the investment, whichever is larger. If the insured survives, he gets the yearly bonuses that the investment has accrued plus a terminal bonus.

Getting Advice

Life assurance is deemed primarily as an investment so that the Financial Services Authority (FSA) strongly recommends that you purchase this policy with the assistance of a financial advisor. As such, you most likely will not be able to buy online life assurance.

If it is life assurance that you need, make sure you make a list of questions before you meet with an advisor. It is important to be clear about what your objectives are for wanting such a policy so that the advisor will be able to give you accurate guidance. Remember that life assurance includes life cover so relevant issues such as your health and amount of coverage should also be disclosed.

Next Steps

After you have consulted with an advisor and you are sure you have discussed all important issues exhaustively, you should be given a few product recommendations. Along with these recommendations, the advisor will also inform you of the pricing scheme for each product.

The recommendations presented to you are based on the information that you have supplied the advisor so ideally, the products should address your particular circumstances and requirements. You are under no obligation to purchase a product right off and you may weigh these recommendations against other offers that you acquire.

Although you may not be able to buy online life assurance, you can search online for reputable independent financial advisors. GP