- August 2, 2021
What is Life Assurance
What is life insurance?
Life insurance is a type of life insurance without a term limit. Life insurance claims are paid out regardless of the age of the policyholder when they die, as long as they continue to make their monthly payments. You can also check out more about life assurance via devere-insights.com/life-assurance.
How does life assurance work?
You can choose the amount you would like the lump sum to be at the beginning of your life insurance policy. The provider will calculate your monthly premium.
As well as paying a fixed lump sum, some whole-of-life policies are more investment-focused. This type of life insurance allows your insurer to invest your monthly premiums and determine your eventual payout.
Commonly known as a "maximum coverage" policy, your premiums are regularly reviewed and may rise as you age. In the event of circumstances changing, your provider may allow you to revisit your policy within a certain time frame.
With a little planning, the lump sum of a life insurance policy can be tax-free. In fact, one of the most popular reasons people opt for this kind of cover is for tax planning purposes, particularly to help their family out with inheritance tax.
The assets that you leave behind are valued when you die. Generally, if the amount exceeds PS500,000, then the remainder of your estate is subject to 40% tax. This threshold includes the family home's value, which is subject to inheritance tax for millions.