What is the difference between an assurance and insurance?
What is the Difference Between Insurance and Assurance? Insurance is most commonly associated with general insurance, such as automobile and motorcycle insurance, which covers accidents and vehicle damage. In contrast, assurance has links with life insurance plans, which cover the policyholder's death benefit.
What is meant by life assurance?
Life assurance = An agreement between a life assurance company and a policyholder; in return for a payment (premium) from the policyholder, the company commits to pay someone or something (the beneficiary) upon the death of the person whose life is being covered (the life assured).
What are the 3 types of life assurance?
Life insurance, which can also be known as life cover or life assurance, is a type of policy that protects your loved ones with financial support if you die. It can help minimise the financial impact that your death could have on your family and offer peace of mind to those you care about most.
What is the difference between term and Life Assurance?
Life assurance is an assurance that you eventually earn a pay-out, whereas a life insurance policy will finish at the end of its term. Most term life insurance policies are taken out for a set period, usually between five and 30 years.
What is the difference between life insurance and investment-linked life assurance?
As investment-linked life assurance is a specialist product, it’s recommended you speak to a financial advisor if you’d like to purchase one. An easy way to remember the difference is life insurance covers you for if you die within the term of the policy, but life assurance is there for when you eventually pass away.
What is the difference between fixed-term and Life Assurance?
The fact the cover is for the whole of your life means the insurer is more or less guaranteed to have to make a payment, so the premiums for life assurance are generally higher than for a fixed-term life insurance policy that might never result in a claim.