What is life assurance? Like life insurance, life assurance pays out a tax-free sum to whoever you choose when you die. However, life assurance usually covers the policyholder for their entire life – so it's also known as 'whole of life' cover.
What is the meaning of life assurance?
Life assurance = An agreement between a life assurance company and a policyholder; in return for a payment (premium) from the policyholder, the company commits to pay someone or something (the beneficiary) upon the death of the person whose life is being covered (the life assured).
What is life assurance on my payslip?
Life assurance is paid for by the employer on behalf of the worker. Should a worker die, the aim is for a cash lump sum to be paid out to their next of kin.
What are the 3 types of life assurance?
Many people think that life assurance and life insurance are the same thing, yet there is a subtle but key difference between the two: life insurance covers the policyholder for a specific term, while life assurance covers the policyholder for their entire life.