Term Assurance
Term assurance is a type of life assurance, but whereas regular life assurance is based on the presumption that you will continue paying to be covered until death, term assurance is only taken out for a fixed period. Why is this?
Generally speaking, most term assurance products are taken out as a precautionary measure against defaulting on payments in case of death. Usually term assurance is used in conjunction with taking out a large loan, such as a mortgage. When the agreed period of term assurance cover has passed (and the mortgage, say, has therefore been paid off) then the contract is over.
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