Mika
VIP Contributor
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).
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).