Difference between Insurance and Assurance ?
- It is a financial protection against something that might happen. Ex: Car insurance for car crash or House insurance for your house going on fire.
QUESTION is whether TERM is INSURANCE or ASSURANCE:
- A life insurance policy, for example, provides coverage to an individual for a specified period of time. If the individual dies during that specific period, the insurance carrier will pay the amount of money agreed upon in the contract.
- If the insured individual lives past the specified time period, the insurance policy becomes void, and the provider is not obligated to make any payment.
so Term is Insurance.
- It is protection against something that will happen. For ex: Life assurance because you will die.
- A life assurance policy will always result in a payment being made because the investment is combined with the sum insured.