General insurance Insurance Vs. Assurance: What’s the Difference?

[Mika]

A lot of people confuse insurance with assurance. Let’s look at the similarities between insurance and assurance and the difference between assurance and insurance.

Insurance and assurance are similar in the sense that they both provide coverage against loss and damages or any hazards. The major difference between insurance and assurance is the term period. While insurance covers the damages and loss for a certain time, assurance covers over an extended period of time. For example, you buy a life assurance for the term of 20 years, your policy will give coverage only for 20 years and upon maturity, you can collect the benefits. However, an assurance policy will give coverage for the entire life and will give benefits to your nominee after your death.

Generally speaking, an insurance policy is for you, assurance policy is for your family (kids or spouse).

 

[Augusta]

Yeah you just reminded me of my commercial class that we were taught the difference between insurance and assurance. Insurance is just a period of time as you have stated but assurance takes a longer period of time and might even be after your demise. It does help the family later in the future

 

[btaliat]

Yeah you just reminded me of my commercial class that we were taught the difference between insurance and assurance. Insurance is just a period of time as you have stated but assurance takes a longer period of time and might even be after your demise. It does help the family later in the future

As naive I am, I don't know anything about assurance. Though I know it as literal meaning to mean to cover something or giving someone on something. The question however is that is the same companies that provide insurance that also provide assurance as well. Because I have never heard of assurance companies before.

 

[btaliat]

A lot of people confuse insurance with assurance. Let’s look at the similarities between insurance and assurance and the difference between assurance and insurance.

Insurance and assurance are similar in the sense that they both provide coverage against loss and damages or any hazards. The major difference between insurance and assurance is the term period. While insurance covers the damages and loss for a certain time, assurance covers over an extended period of time. For example, you buy a life assurance for the term of 20 years, your policy will give coverage only for 20 years and upon maturity, you can collect the benefits. However, an assurance policy will give coverage for the entire life and will give benefits to your nominee after your death.

Generally speaking, an insurance policy is for you, assurance policy is for your family (kids or spouse).

Thanks for the vital information up there. In one of my posts about some terminologies associated with insurance. I made mention of whole life coverage insurance which means that the insurance will cover the inisred person for the rest of his life and even the beneficiary as well can enjoy from this policy. Can we call whole life coverage assurance as well?

 

[Wisdom01]

Exactly most times I get confused with this , I think assurance should be more about life , while insurance covers other aspect or risk ,and what some usually go for actually is life assurance policy , so they could actually extend their insurance policy and cover their family and their self against risk

 

[Jasmine]

To tell you the truth, I was not aware about the difference between insurance and assurance. Well, I knew the word assurance but I did not know what exactly assurance meant in terms of insurance. Based on what I have read here assurance is used for whole life insurance policy.

 

[Mandy96]

Well if you ask me, insurance gives one some kind of assurance that you are in safe hands. As for the difference, I think one sounds formal while the other sounds otherwise. The two words are very similar in definition but I believe there are clear meaning to each of them

 

[Wisdom01]

Well if you ask me, insurance gives one some kind of assurance that you are in safe hands. As for the difference, I think one sounds formal while the other sounds otherwise. The two words are very similar in definition but I believe there are clear meaning to each of them

I think assurance is mostly used for life ,like for instance life assurance policy while the insurance goes with properties and others ,like property insurance policy and others too, the life assurance policy covers every risk that relates to one life and it could either be on both a long term and short term basis ,when it comes to risk coverage I think

 

[btaliat]

Assurance is betting or insuring on something that is surely to happen. That is, possibility. Whereas insurance is when you insure something that's likely to happen. That is, probability. Most time,, if assurance is done on life because it is very certain that we will all die one day. While insurance can be on property

 

[sincerem]

Insurance without assurances is dead. Insurance companies moves together through assurance. If you aren't assured of profit, you wouldn't have tried being around insurance to earn from their premium policy benefits in the future. No one loves to spend money carelessly, we spend to gain something meaningful from it.

 

[Jasmine]

Based on my research assurance is a term used for the insurance policy that provides coverage for while life (that's the reason why it is called assurance). Insurance is basically used for the insurance policy that has a fixed term for example 10-20 years. Both of these terms are used for life insurance policy.