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Life Insurance and Life Assurance policies originally offered quite different benefits, however in common usage today they have come to mean much the same thing.
Technically speaking ‘Assurance’ policies are policies where the payment of a promised sum is guaranteed, whether on death or at the end of a policy term. ‘Insurance’ policies however provide for payment of the sum insured only in certain circumstances.
Because the vast majority of Life policies arranged today are ‘Pure Protection Term Policies’ (they do not have any investment element and they stop providing life cover after the selected fixed number of years) then technically they are Insurance policies because the ’certain circumstances’ rule applies, although some people still describe them as Term Assurance.
The confusion lies in the fact that death is assured for all of us, but not always within the term of a policy set up to run for a fixed number years.
All policies offered through Direct Life are ‘Pure Protection Term Policies’ and therefore we call them Life Insurance policies and not Life Assurance policies, although some of the insurance companies, who’s products we offer, still describe them as Life Assurance on their documentation.
23 August 2007 16:32:55
Leading UK life insurance provider Friends Provident has again been praised for its financial strength.
The life cover firm has received an A+ rating from credit rating agency Fitch in its Insurer Financial Strength rating, reports Reuters.
Friends Provident was applauded for its continued attempts to develop new business and diversify.
The life insurer's new business increased by 13 per cent to £3.4 billion in the first six months of 2007, (compared to £3.0 billion in 2006), while international new business grew by 16 per cent to £1.2 billion.
The firm has also established some 200 alliances with intermediary providers, in a bid to establish itself successfully in the German market.
And a proposed merger with fellow life insurance company Resolution was announced at the end of July, under the terms of which the Friends Financial group would be created, serving some 9.5 million customers.
Rumours of counter bids from Pearl, Zurich, Standard Life and Old Mutual, fellow providers of life insurance, critical illness cover and income protection, have been widely discounted.
25 June 2007 16:28:47
A new Critical Illness Recovery Plan product has been launched by RBC Insurance, offering a range of new unique features.
Features include a long term care insurance conversion option, which allows clients to convert their critical illness cover to long term care cover without the need for medical underwriting at the time.
It also includes an early assistance benefit in which ten per cent of the critical illness policy's face amount is paid if certain conditions which are included in the cover are diagnosed early.
Other features include a limited premium payment option and an improved return of premium option.
John Young, president and CEO of the company, said: "RBC Insurance is committed to providing distributors and their clients with industry-leading products and services.
"Our enhanced Critical Illness Recovery Plan was updated to include features and services that are valued by our clients and continues to provide exceptional coverage for Canadians facing a critical illness."
19 June 2007 16:04:25
Your life insurance premiums could be amended in your favour should you improve your lifestyle, according to the Association of British Insurers (ABI).
Making significant lifestyle changes such as quitting smoking or losing weight should - even if you were a smoker or obese when you took out the policy - lead to your policy premiums being amended.
ABI spokesman Jonathan French confirmed the "advantageous effect" of lifestyle changes on your life insurance premium:
"If you let your insurance company know that you've changed your lifestyle and your state of health has improved, then they might well - in fact in most cases they will - amend the premiums in your favour."
He added that the flexibility of most life insurance policies meant that a consumer wouldn't be hit by increase charges should they gain weight after taking out the insurance.
"This is where aspects of insurance are to the benefit of the consumer, because they are underwritten at the point of application," he said.
