What is Assurance? Assurance means financial coverage that provides compensation for an event that is certain to happen. There is little or no much difference between Assurance and Insurance. Sometimes both words are even used interchangeably.
While insurance refers to coverage over a limited time, assurance on the other hand, applies to coverage for extended periods or until death. Assurance may also apply to validation services provided by accountants and other professionals.
In the United Kingdom, “life assurance” is another name for life insurance. The adverse event that both whole life and term life insurance deal with is the death of the person the policy covers. Since the death of the covered person is certain, a life assurance policy (whole life insurance) results in payment to the beneficiary when the policyholder dies.
In our next article, the differences between assurance and insurance would be discussed.