General insurance Difference between assurance and insurance.

[btaliat]

Lot of have been said about insurance and assurance but the fact is that it is high time we knew difference between these two terms as they are closely related but not the same.


Some people don't even know that life insurance is not really an insurance but assurance. I hope this post will change people's thoughts on the usage of the two terms.


In insurance, the risk may not occur. When we insure our properties, it doesn't mean that incident will are trying to idemnify will occur. But in assurance, it will surely happen.

Insurance hinges on probability, just like I explained over there, insurance is based on probability of an events. It doesnt mean the incident will happen but it is likely to happen. While assurance is a zed on possibility that thing is surely going to happen no matter what.

By now, I am very sure that we can now cited examples of both insurance and assurance. Examples of insurance include: burglary, fire, health etc while example of assurance is life.

 

[sincerem]

Assurance is life, it is something that comes with certainty. When you're given an insurance via the insurance policy you opted for. It means your benefits is certain provided you never breached the terms of use. Even some one can see his or her assurance status rescinded. Cos humans make assurances and at some point we slip off cos of conditions that wasn't met.

 

[Mika]

You can understand the difference between assurance and insurance base don that is covered by these two different concepts. Insurance basically provides coverage for a certain number of years, this is also often called term life insurance. Assurance provides coverage for the entire life, and also called whole life insurance sometimes.

 

[sincerem]

You can understand the difference between assurance and insurance base don that is covered by these two different concepts. Insurance basically provides coverage for a certain number of years, this is also often called term life insurance. Assurance provides coverage for the entire life, and also called whole life insurance sometimes.

Their are more than four types of life insurance. The other two you didn't mention are; "simplified issue life insurance, guaranteed issue life insurance etc. Their are others too which I couldn't remember. But they're simply under life insurance premium policy. Its simply left for us to get assurance covered within any of them.

 

[btaliat]

Only thing I know is that is easy to differentiate the two is that while insurance is risk that one wants to prevent or reduce against things that are have high probability of coming but not certainty that they will happen while assurance is the one that covers what will surely happen.