What is assurance life?
Assurance life provides customers with an insurance policy which will pay out a lump sum payment to the family of a customer who loses their life, and is one of the most important types of insurance a customer can take out. Assurance life provides customers with peace of mind that their family will be looked after financially should the worst happen, and is usually offered to customers at the same time as they buy their first home.
This is because a first mortgage was traditionally a customer’s first financial responsibility in life, although many people have children before buying their first home now and should consider taking out assurance life when they are expecting their first child, as children are just as bigger financial responsibility as a mortgage.
How does assurance life work?
Customers who decide to take out assurance life will look for life insurance quotes, and will notice that the younger a customer is when they decide to take out the cover, the less they will have to pay. Customers then pay a monthly premium for their assurance life, which they will pay for the duration of the policy. The customer will also nominate someone, or some people to receive the proceeds from their life insurance policy, and if the customer was to die during the policy, that money would then be paid out to that person.
Why do I need assurance life?
Assurance life provides customers with peace of mind that their family will be financially looked after if they are no longer able to look after them themselves. Customers trying to work out if they need assurance life should ask themselves what would happen to their families finances over the next year if they were to die tomorrow. Would they be able to afford clothes for the children, or food to put on the table. Would they be able to afford the mortgage or would they default, and have their home repossessed. Assurance life provides customers with the money their family will need to pay off their mortgage, guaranteeing their family somewhere to live, and will also provide their families with enough money to pay their household bills until they find a way back onto their feet.