Life Insurance

Most people believe Life Insurance and Life Assurance are the one in the same, this is not the case. Each is designed to serve a different objective.

Life Insurance is designed to protect families under the most unfortunate circumstances, the loss of a loved one. It’s effectively a fixed-term product. If you were to pass away during the policy period, the insurance company pays out a tax-free, pre-determined sum. If you survive until the end of the term, the policy ceases and has no residual value.

Usually Life Insurance is an essential part of any family’s financial protection. It is designed to ensure that debts such as a mortgage are fully repaid in the case of policyholder’s death.

On the other hand, Life Assurance isn’t a fixed-term product. It is a combination of investments and insurance. It pays out a sum equal to the higher of either a guaranteed minimum underwritten by the policy’s insurance provisions or its investment valuation. One particular form of Life Assurance is known as « Whole of Life ». These policies remain active for as long as you live and have no preset term.

Life Assurance may in fact be much more worthwhile but people commonly elect for Life Insurance for the simple reason that it is much cheaper.

However, finding the right Life Assurance or Life Insurance to meet your personal needs and requirement is not a simple process. Richelieu International can help you find the most appropriate, international policy to suit your specific needs.