Life assurance and life insurance the same?

[Jeanne]

I wonder could someone explain what the difference is between Life Assurance and Life Insurance? Or are they the same?

I am applying for a mortgage and the lender is asking for a copy of Life Assurance I don't have one but I guess will have to get one.

Is it always necessary to have Life Assurance when getting a mortgage?

Thanks
J

 

[Jeanne]

Re: Life Assurance

Oh, and one more question. How do you calculate cost of Life Assurance? Does it depend on age and value of property? Thanks

 

[ClubMan]

Re: Life Assurance

I wonder could someone explain what the difference is between Life Assurance and Life Insurance? Or are they the same?

I seem to recall that assurance is cover for events that will happen while insurance is cover for events that might happen. In terms of life cover, since death is inevitable - although not necessarily within the term covered by a policy - I think that they are the same thing. But I could be wrong.

I am applying for a mortgage and the lender is asking for a copy of Life Assurance I don't have one but I guess will have to get one.

Is it always necessary to have Life Assurance when getting a mortgage?

In general owner occupier purchasers required mortgage protection life assurance which will pay off the outstanding mortgage in the event of their death before the mortgage is cleared.

See this thread for more on mortgage protection life assurance and other mortgage related insurances.

Mortgage Protection and Mortgage Repayment Protection Policies

How do you calculate cost of Life Assurance? Does it depend on age and value of property?

It depends on many factors including the amount of the cover (usually the amount borrowed on the mortgage), the length of the mortgage term, whether level/decreasing/convertible term cover is required, the age of the borrower, whether or not they smoke, other health issues etc. Shop around for this cover after reading the thread linked above.

 

[Jeanne]

Re: Life Assurance

Thanks for reply.

I didn't realise that mortgage protection and Life Assurance were one and the same?

That explains it

 

[vladamir]

Re: Life Assurance

for life assurance; see the European Communities (Life Assurance) Regulations 1984. Statutory Instrument number 57 of 1984. if you go onto irishstatutebook.ie it should be fairly easy to find

 

[CCOVICH]

Re: Life Assurance

I didn't realise that mortgage protection and Life Assurance were one and the same?

Mortgage protection is a type of life assurance, i.e. it only pays out to cover the outstanding mortgage balance, and the level of cover generally reduces over time (hence premia are cheaper). Other types of life assurance may pay out a fixed lump sum on death or at a set age.

 

[CCOVICH]

Re: Life Assurance

I seem to recall that assurance is cover for events that will happen while insurance is cover for events that might happen. In terms of life cover, since death is inevitable - although not necessarily within the term covered by a policy - I think that they are the same thing. But I could be wrong.

You're right-the terms are used interchangeably when talking about life cover.

 

[CCOVICH]

Is it always necessary to have Life Assurance when getting a mortgage?

This thread may be of interest, but in most cases, yes, the lender will require a policy, and it will generally be in your own interests to take out a policy anyway (where the cover is for your PPR mortgage).

 

[Yakuza]

To answer the original question, Life Assurance used to be mainly used in Ireland / the UK ("British English" speakers) whereas "Life Insurance" was used in the US.

They are pretty much interchangeable nowadays.

You normally take out insurance against something that might happen (i.e. car insurance against crashing / theft etc or house insurance against fire / theft etc) but a "whole of life" assurance policy is a policy against something that will happen (i.e. you will die some day!).

 

[nt00deep]

Re: Life Assurance

I didn't realise that mortgage protection and Life Assurance were one and the same?

Don't confuse this with mortgage REPAYMENT protection. This does not cover outstanding balance on mortgage. It covers ongoing repayments for a defined period, in the event of unemployment etc.

There are numerous other threads on the subject. As an owner-occupier, you will be requried to take out cover on your life to cover the outstanding balance, but you will not be required to take out repayment protection.

BUT BE CAREFUL. You will be asked to sign a declaration declining the offer if you don't take it up, and you cannot take it out after the fact (unless you re-mortgage).