However in this article, we are going to discuss the differences between insurance and assurance.
1. Insurance refers to coverage over a limited time, whereas assurance applies to coverage for extended periods or until death.
2. Insurance is used only where the risk, through probability can be ascertain i.e. it may or may not happen at a certain time in future. While assurance refers to financial coverage that provides compensation for an event that is certain to happen.
3. Another distinctive difference is that insurance comes from the insured while the assurance from the insurer. In other words, the insurer assures the insured of his life or property while the insured insures himself against his life or property.
4. Insurance covers a fixed period, such as 30 years, from the policy’s purchase date. For example, If the policyholder dies during that time, the beneficiary receives money, but if the policyholder dies after the 30 years, no benefit is received.
While that is so, assurance policy on the other hand, covers an event that will happen no matter what.
Hope you can now distinguish between the two, even though sometimes the two terms are used interchangeably.