Pros And Cons Of Life Assurance
Pros:
Peace of mind, knowing that your family will be financially comfortable when you pass away
Lasts until your death, without any expiry date
Can be used as a form of investment
Cons:
Can be an expensive product to purchase, since it lasts indefinitely
May require a lifetime of regular premiums to keep your policy active
Pros And Cons Of Life Insurance
Pros:
Covers your family for financial liabilities in the event of your death
An affordable form of insurance to cover debts up to their repayment
Cons:
Only pays out if you die within the term of the policy
You will need to purchase new cover should you wish to extend your insurance past the expiration date of your life insurance
Premiums become more expensive as you get older
Which Product Should I Choose?
If you are not sure which option is best for you – financially, in terms of premium costs, or with regards to pay outs, give Revolution Finance Brokers a call.
Life insurance can be expensive but provides huge peace of mind. However, choosing the right policy is essential to ensure you don’t spend more than you need to on premiums and have the right policy in place to support your family.
How Does Life Assurance Act As An Investment?
Life assurance is both insurance and an investment product. Your monthly premiums are split into two parts, with one proportion of the premium being banked towards the final pay out to be made to your beneficiaries, and the other proportion being used as investment funds.
Your life assurance policy will state a minimum pay out in the event of your death, but the more funds invested in your policy, and the more successful the investments made with those funds, the higher the value will grow.
This is also known as life assurance with benefits, with the benefit being the growth in fund value as a result of the investments made.
You can cash in some of the funds in your policy, or could choose to close your policy and claim the fund as a one-off lump sum. However, they may be an exit penalty payable that will be deducted from the cash pay out.
If you are considering using life assurance as an investment, give us a call. We can explain the ins and outs of how this works, how best to set up your policy, and how to achieve maximum return on your investment.
