What is assurance in insurance

Assurance is an arrangement in which an insurer pays reimbursement for a specified occurrence, such as death. Assurance policies provide continuous coverage until the policyholder's death. For example, a whole life insurance policy provides financial protection for the rest of the policyholder's life.

Why insurance is called assurance?

What is the Meaning of Assurance? The term assurance is used in the insurance industry that to in terms of life and term insurance policies. In a life insurance policy, the policyholder is given assurance that he will receive compensation in case of a certain event like death or disability.

What is the term assurance means?

Assurance refers to the high degree of certainty that something is accurate, complete, and usable. Professionals affirm these positive assurances after careful review of the documents and information subject to the audit or review.

What is the difference between assured and insured?

To assure someone is to remove someone's doubts. To ensure something is to make sure it happens—to guarantee it. To insure something or someone is to cover it with an insurance policy.

Which insurance is also known as assurance?

A life insurance contract is considered an assurance contract because the insurance company guarantees a certain amount of payment as compensation after the death of the insured.