Life Assurance – What is it and Why is it Important

Life assurance is a contract between an assurer and a policyholder. The assurer promises to pay a capital sum on the death of the life assured to a specified beneficiary in exchange for a regular monthly premium. Life assurance can be used to cover your financial obligations, whether you're buying your first home, starting a family, or simply decreasing the financial burden that your loved ones will face after your death.

Life assurance is an insurance policy that doesn't have a fixed term. It is held indefinitely as long as premiums are paid. Usually, a payout is in the form of a cash sum upon death. This could be considered life insurance in its simplest form. In the absence of a term limit, beneficiaries are almost guaranteed to receive their benefits upon the policyholder's passing.

This gives you peace of mind knowing that your loved ones will be taken care of. As financial obligations grow, so does the need for sophisticated family and personal protection. Independent financial advice is therefore essential.

There are many personal protection products available in the financial services industry that can provide the benefits you need. For many, the sheer number of products and providers available can be overwhelming. Your SIP Wealth Management advisor can help.