What is the purpose of life assurance?

Life insurance, which can also be known as life cover or life assurance is a type of policy that protects an insured's loved ones with financial support when the insured is considered dead. It can help minimise the financial impact that the insured's death could have on his/her family and offer peace of mind to those he/she cared most about. Investments are the opposite of savings because they're meant to grow money that you spend in the distant future, namely in retirement. Investing is also best for smaller goals you want to achieve in at least 5 years, such as buying a home or taking a dream vacation.

Advantages of Life Insurance

LLife Assurance enjoys favourable tax treatment unlike any other financial instrument.


Is life assurance an investment?

Some life assurance products are linked to investments, so part of your premium will be invested. This means the amount of any pay out received on the insured’s death will depend on the performance of the insured’s investment policy.