Difference between Insurance and Assurance ?

INSURANCE :

  • 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.


ASSURANCE:

  • 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.

Note: In insurance sector , Both Insurance and Assurance are used Interchangeably. To counter this, companies now offer detailed guides to their customers containing information that satisfies customer needs and answers frequently asked questions.

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