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Difference Between Life Insurance and Life Assurance

To the ear, insurance, and assurance sound remarkably similar. That is probably the reason that most people, depending on their country of origin, believe that when someone uses the term "assurance" in their search engine query they are incorrectly using it in place of "insurance." However, it might surprise many people that in some countries, insurance companies offer both life insurance and life assurance policies. 

Assurance is defined as a decision made to ensure an individual's comfort and dispel their doubts regarding certain events. In the case of life assurance, the policyholder is assured that his or her beneficiaries will receive a set amount of money when they die. As long as the payments are made in a timely manner, the policy will never expire so long as the policyholder is still alive. You can find more details about life assurance via https://devere-insights.com/life-assurance/.

Life insurance is a policy that will pay beneficiaries only if the insured dies before the insurance policy expires. The insurance policy of this type is known in some countries as "term life insurance." The word "insurance" is defined as the means of guaranteeing certain protection to a person or object against loss or damage to that same person or object.

Using this definition, insurance is offered by companies for a pre-determined length of time, and at the end of that time period, the insured and beneficiaries receive no monetary or other compensation if the insured is still alive and well.

In summary, insurance and assurance are not technically homophones, but they sound similar enough to create some confusion amongst those in the market for either type of policy. The important thing for those in the market for either policy, insurance is equivalent to term life insurance, and life assurance is equivalent to whole life insurance.