|
|
Common Mistakes To Avoid When Purchasing Term Life Insurance
When purchasing term life insurance, there are a number of factors to consider. Consumers should make certain they understand the concept of term life insurance and make purchases accordingly. Here are a few of the most common mistake people make...
Getting the best life insurance quote.
Copyright 2005 Stacey Zimmerman
Your life insurance quote is primarily dependant on a number of personal factors, namely your health, family history, lifestyle and age. It's not possible to physically change any of these factors and you definitely...
How to Lower Your Health Insurance Premiums
Human beings are mortal. Though every single life has to
terminate one day yet it is the very nature of rational agents
to plan for the expected as well as the unexpected happenings in
their future. The most prudent plan to secure your and the...
Insurance Regulators Focus on Abusive Sales Practices
State insurance regulators are focusing their efforts on a short list of five consumer problems areas related to the improper sale of variable annuities and life insurance. The problem areas include: 1) 1035 exchanges, 2) variable annuities inside...
Life Insurance Providing Little Protection from Terrorism
Recent statements by the City of London Police Commissioner James Hart that future terrorist attacks in London’s financial centre are, "a matter of when, rather than if", will increase already serious concerns over issues of personal and business...
|
|
|
|
|
|
|
|
Insurance versus assurance: what is the difference?
The world of finance is extremely complicated and there are many factors to consider when choosing any financial protection product.
When looking for a policy you need to know what you are looking for and what is on offer in order that you get the right cover for your needs.
One thing that many people find confusing is the specific use of the term “insurance” and the use of “assurance”. What are the differences between them?
In general, the term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen.
For the purposes of financial provisions, a life insurance policy provides cover for a set period of time. If the worst were to happen during that time (and there are no complications), then the insurance company will be required to pay out the agreed sum to the beneficiary. The only time the policy has any real monetary value is if there is a claim made for payment as a result of an event triggering that claim, such as the death of the person covered. If the person outlives the term of the policy, then the insurance policy will cease and no payment will be made.
Life assurance is different from insurance, and will always result in a payment. This is achieved by combining an investment element along with and an insured sum. This means that over time the value of the policy can increase as the investment bonuses are added. If a person covered by life assurance were to die, then the insured sum would be paid out, alongside the investment bonuses which would have accrued over time. If it is necessary to cancel the policy prior to the end of any designated term period, or the death of the life being covered, then once an investment bonus has been added, the life assurance policy will have an encashment value. It is therefore possible to cash in a policy earlier than its
usual termination date, in order to collect on the investment portion. It should be noted that many insurance companies place penalties for cashing in policies early.
The distinction between the two terms has become increasingly blurred. This is principally due to many companies offering both types of policy and grouping insurance and assurance titles in similar contexts, sometimes interchanging the two terms. Richard Brown, Chief Executive of Moneynet.co.uk, clarified the situation by stating, “most life insurance companies offer a wide range of insurance and investment services – for example pension, investment funds, investment bonds, car insurance, home & contents insurance, life assurance, and even loans. Sometimes a ‘life insurance’ company will call itself a ‘life assurance’ company but they mean one and the same.”
More companies within the financial services industry have realised that consumers are becoming increasingly baffled by the choice of financial products available. Although this confusion has resulted in a certain amount of apathy, many firms are resolving the situation by providing comprehensive information guides. This has lead to an increase in the number of the online financial guides and glossaries that have become available. Sites such as http://www.Moneynet/ or http://www.Moneyfacts/, and http://www.MoneyExtra/ not only provide comparisons of financial products, but also information to help consumers make informed decisions. With organisations like Which? writing publications such as ‘Be Your Own Financial Adviser’, the focus has turned to providing consumers with sufficient information to make their own financial judgements.
About the Author
E-mail: INFO@MONEYNET.CO.UK Telephone: 020 8313 9030 Fax: 020 8464 1971 Website: http://www.moneynet.co.uk Address: Moneynet Sussex House 8-10 Homesdale Road Bromley Kent BR2 9LZ
|
|
|
|
|
Insure.com Car Insurance Quotes, Term Life Insurance Quotes, Auto ... |
Insure.com provides instant online car insurance quotes, term life insurance quotes, auto insurance quotes, health insurance quotes, home insurance quotes, ... |
www.insure.com |
  |
Insurance Information Institute (III) |
Attempts to improve public understanding of insurance -- what it does and how it works. The site is subdivided into sections for "Individuals" (consumer ... |
www.iii.org |
  |
State Farm Insurance Companies |
Provider of auto, health, home and life insurance. Get quotes and agents listings. National headquarters. |
www.statefarm.com |
  |
Allstate - Official Site - Auto Insurance, Home Insurance ... |
Offers insurance for autos, homes, property, life, mortgage protection, and business. Site includes many useful calculators and tools, an agent locator, ... |
www.allstate.com |
  |
Progressive Auto Insurance - Car Insurance Quotes Plus Boat, RV ... |
Provides instant online auto insurance quotes, insurance rate comparisons. Offers motorcycle, RV, boat, or car insurance. Purchase insurance online. |
www.progressive.com |
  |
Insurance - Wikipedia, the free encyclopedia |
It cannot put the insurance company in financial jeopardy. ... If the insured does not perform then the insurance company does not have to perform. ... |
en.wikipedia.org |
  |
Cheap annual travel insurance | single trip holiday insurance quotes |
Cheap quotes for annual travel insurance and single trip holiday insurance online with moneysupermarket.com. Over 450 policies compared in seconds... |
www.moneysupermarket.com |
  |
California Department of Insurance |
Works to foster an insurance market that is fair, competitive and accessible to all Californians. Site designed to assist consumers, aid in the licensing of ... |
www.insurance.ca.gov |
  |
Insurance: Car, Auto, Life, Home, Business and Investment Services ... |
Nationwide offers insurance and services including: car insurance, auto insurance home owner insurance, business insurance as well as investment services. |
www.nationwide.com |
  |
GEICO Car Insurance. Get an auto insurance quote and save today ... |
Offers auto and motorcycle insurance. Request quotes online or by phone. File claims online. |
www.geico.com |
  |
Insurance Center - Yahoo! Finance - Find the Right Insurance for ... |
Insurance Center - Protect and insure your assets with comprehensive resources about auto, home, health and life insurance. |
insurance.yahoo.com |
  |
Compare Auto Insurance Quotes from Top Auto Insurance Companies |
America's #1 online insurance agency. Compare instant auto insurance quotes, car insurance quotes, life insurance quotes, home insurance quotes, ... |
www.insurance.com |
  |
Car Insurance, Home Insurance, Travel Insurance, Life Insurance UK |
Provide travel, home contents and car insurance for professionals, graduates and students. |
www.endsleigh.co.uk |
  |
Home Insurance Quotes, Car Insurance Quotes - Lloyds TSB Insurance |
Home Insurance Quote, Car Insurance Quotes, cheap Travel Insurance, Pet Insurance, Business Insurance. Up to 15% discount for buying insurance online. |
www.insurance.co.uk |
  |
Car insurance, Home insurance, Life insurance & more - Direct Line |
Direct Line offer car insurance, home insurance, life insurance, travel insurance, mortgages, personal loans,breakdown cover and much more! |
www.directline.com |
  |
PA Department of Insurance |
State regulatory authority. Site provides information for consumers, producers, and the insurance companies themselves. |
www.ins.state.pa.us |
  |
Texas Department of Insurance |
Regulates the state's insurance industry, encouraging competition to make insurance available and affordable. [some content available in Spanish] |
www.tdi.state.tx.us |
  |
Life Insurance (U.S. Department of Veterans Affairs) |
Informationa about all Life Insurance programs administered and supervised by VA. |
www.insurance.va.gov |
  |
Insurance for Canada and the United States by RBC Insurance |
Specializes in life, health, travel insurance, and annuities for middle income families in Canada and the United States. Site offers individual, family, ... |
www.rbcinsurance.com |
  |
Free Auto, Health, Life and Homeowners Insurance Quotes - MSN Money |
Get free auto, health, life and homeowners insurance quotes from top insurance companies in the country. Find the latest news and information related to ... |
moneycentral.msn.com |
  |
|