Differences Between Insurance And Assurance

There are different terms in the world of finance, where people often get confused. The first and foremost things where you will get confused are with the terms insurance and assurance.

When we go for the exact dictionary meaning, insurance will provide cover for the unexpected things that might happen. Whereas, the assurance will cover the thing that is certain to happen.

During the set period of time, life insurance will provide the financial provisions, if any unfortunate thing happens during that time. The insurance policy will be ceased and payment will not be done, if the person outlives after the term of the policy.

But unlike life insurance, life assurance will always pay the payment. The payment that is made will be insured sum along with the investment element. As the investment bonuses are added, the value of the policy will increase. If the person is covered with the life assurance dies then in that situation the person’s dependents will be benefited with the insured sum as well as the invested bonuses. Even, one can cash the money prior to the termination period.

Mostly only the insurance companies offer even this assurances. These are not used as different terms in US. They are considered as the single term and even they are used interchangeably.

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Updated: December 18, 2013 — 11:37 pm
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