Which life assurance policy is best if an individual's income is likely to increase in the future?

The best choice for an individual whose income is likely to increase in the future is renewable term assurance. This type of policy allows the policyholder to renew their coverage at the end of the term without requiring a medical examination, which can be beneficial as their income rises and potentially increases their need for higher coverage.

Renewable term assurance offers the flexibility to adjust to changing financial circumstances. As an individual's financial situation improves, they may want to increase their coverage to ensure adequate protection for dependents or to cover a growing mortgage or other financial responsibilities. This type of assurance allows for adjustments in coverage limits upon renewal, enabling individuals to align their insurance needs with their increasing income without the burden of underwriting requirements.

Whole life insurance provides permanent coverage with a cash value component but does not allow for adjustments based on future income potential as neatly as renewable term assurance. Term life insurance is typically less costly, but it does not offer the renewal feature that fits with increasing income needs. An endowment policy is designed to pay out a lump sum at the end of a specified term or upon death, making it less suitable for individuals whose focus is on adapting coverage over time as their income increases. Thus, renewable term assurance stands out as the most appropriate option in this context.