May 6th, 2020 What’s the difference between life insurance and life assurance? It’s a question that leaves many floundering: what’s the difference between life insurance and life assurance? It’s important to understand the nuances of each product before you make a call on which is best for you and the financial futures of your loved ones. So let’s get to the bottom of the difference between life insurance and life assurance. What are life insurance and life assurance used for? Let’s be honest. It’s not easy to contemplate your own mortality. But knowing that you’ve made preparations to protect the financial futures of your nearest and dearest...
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The Insurance Series: The difference between life insurance and life assurance In the third and final instalment of our Insurance Series we explore the differences between life insurance and life assurance. The first two articles in the series covered the reasons why you may need certain types of insurance and why putting an insurance policy into trust is a smart move. This month we go one step further and consider the specifics of life assurance vs insurance and which is best under what circumstances. For fully personalised advice, our team of independent financial advisers is always on hand to help – find us at www.plutuswealth.com. What is the difference between the two? Last month we...
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For Non-Disclosure of Material Facts on Strength of Proposal Form In the recent decision of Richardson v Financial Services Ombudsman & anor the High Court upheld a finding of the Financial Services Ombudsman (the "FSO") that an insurer was entitled to avoid a life assurance policy on the grounds of non-disclosure. Significantly the decision of the High Court turned on the strength of the proposal form and serves as a useful reminder to insurers of the importance of a well-drafted proposal form. The life assurance policy in dispute was taken out in 1996 by the claimant's husband, who ultimately died in 2013. Following his death it transpired that prior to inception he had failed to...
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5 key factors to consider before ceding your life policy Many consumers who are eager to finalise the house-buying process often rush into taking out and ceding life insurance without first doing their homework. The ceding of a life insurance policy involves legally transferring a portion of the cover amount to be used as collateral by a creditor in the event that the policyholder is unable to meet their debt obligation. When applying for a home loan, banks may require that you take out life cover as security if you do not meet a certain salary bracket. The life cover is then ceded and used as collateral against the home loan to ensure that your loved ones or beneficiaries still have a...
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There’s a lot of unique language that comes along with purchasing a life or AD&D insurance policy, trying to file a claim, or dealing with the insurance company. Knowing the meaning of these terms can be essential to making the right decisions when purchasing a policy, filing a claim, or resolving a dispute. Here are some of the common terms and their meanings. AD&D: This stands for accidental death and dismemberment, a kind of insurance policy that pays out if the insured suffers very specific kinds of accidental deaths and serious bodily injuries. Commonly acquired through an employer. Active Employment : Many policies acquired through an employer require the insured be ‘...
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What is the Point Of Life Insurance? What is the Point Of Life Insurance? Life insurance can help provide financial security to your loved ones if you were to die unexpectedly. If your claim fulfills the terms of the policy, your beneficiaries will receive a death benefits that can help replace lost income and pay expenses. Life Insurance Overview The two main types of life insurance are term and permanent (whole). A term policy provides coverage for a specific period of time — usually between five and 30 years. Permanent life insurance stays in effect until the policyholder dies and can accumulate cash value. Life insurance companies charge premiums that may be based on many factors,...
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The short answer is: If you already have a policy in place, you’re covered for COVID-19. If you haven’t yet applied for a policy, you could face delays in approval. Is the coronavirus covered by life insurance? Yes. There is no pandemic or epidemic exclusion for life insurance. This means if you have an active life insurance policy and continue paying premiums, your beneficiaries will receive a payout if you die from COVID-19 or related complications. What if I have an active life insurance policy and travel to an affected area? Your life insurance company can’t change your rating class or premium after your policy is in force. As long as you make timely premium payments,...
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A life insurance policy is a contract between your insurance company and you, the policyholder. While the benefits of life insurance are clear, there is always a risk that a claim is denied because information is omitted from an insurance application. To offset this risk, the Texas Legislature and most other states have enacted a law requiring all life insurance policies to contain an incontestability clause. See Texas Insurance Code, Section 1131.104. This law states that your insurance company cannot contest the validity of your life insurance policy after it has been in force for two years from its date of issue. The purpose of an incontestability requirement is to protect you from a...
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Life insurance (A.K.A. life cover, death cover, or life assurance) isn’t for everyone. But if your family is likely to struggle without your financial support, a policy can give you real peace of mind about what might happen if you died. So, what is life insurance, and how does it work? Let’s see… What is life insurance? Life insurance is a type of insurance policy. You pay in money regularly, and in turn the provider promises to give your loved ones a certain amount of money if you die. Why get life insurance? What is life insurance for? Well, if you’re the main breadwinner in your family, it can give you peace of mind about how they would manage if something were to happen to you. It’s...
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Term Life Insurance is a form of life insurance that provides coverage to a policyholder at a specified rate of payment and for a specified period of time. In the event that the insured remains alive after this specified period, the named beneficiaries are not paid, the coverage at the former rates of premium will no longer be certain and the policyholder will be forced to either give up the insurance or possibly get additional coverage with altered costs or conditions. Under this form of life insurance, death benefits will only be paid to the beneficiary if the policyholder dies during the specified period. It is the cheapest way to buy a significant death benefit on a coverage amount for...
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