Life Insurance

Amidst common misconceptions, many perceive Life Insurance and Life Assurance as interchangeable terms, but in reality, they serve distinct and separate purposes.

What is Life Insurance?

Life Insurance is created to be a safeguard for families in the event of a tragedy, such as the passing of a loved one. It is a form of fixed term insurance designed to provide a tax-free lump sum if death occurs during the policy term. However, if you survive until the end of the term, the policy ceases and has no residual value. Life Insurance stands as a fundamental pillar in safeguarding a family’s financial security, meticulously designed to guarantee the full repayment of outstanding debts, such as mortgages, in the unfortunate event of the policyholder’s demise.

What is Life Assurance?

In contrast, Life Assurance transcends the boundaries of fixed-term products, encompassing a fusion of investments and insurance. The payout from Life Assurance is calculated based on the greater of either the guaranteed minimum, underwritten by the insurance component of the policy, or the value of the investments. Life Assurance policies are typically categorized as “Whole of Life,” signifying that they remain in effect throughout your lifetime without any predefined term.

Which one to chose?

Owing to its affordability, Life Insurance frequently emerges as the preferred option among the two. Nonetheless, Life Assurance tends to offer substantially greater benefits, particularly when it comes to securing the financial independence of your beloved ones.

Free financial consultation

Choosing between Life Insurance and Life Assurance can be tricky. At Richelieu International, we take great pleasure in assisting you in finding the perfect international policy tailored precisely to suit your unique needs.



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