Difference Between Life Assurance and Life Insurance

Life assurance and life insurance are made to protect each individual against any incident that can happen. The insurer pays a certain or fixed amount either yearly or monthly. This is a good investment. You will never know what can happen, and it would be best to be prepared.

Life Assurance

Life assurance is a kind of insurance policy that reimburses the policy holder during death. The insurers pay a regular amount monthly or yearly just like any insurance policy. When natural death occurs, the policy then shells out money on what was being paid by the insurer. In this way, the money goes to the beneficiaries. You are able to leave a bit of money for your family, especially when you had left them when they are going through hard times.

Life Insurance

Life insurance is an agreement between the insurer and the policy owner. The insurer concurs to pay the assigned beneficiary money upon any occurrence of the insured person’s death or other even like critical and terminal illness. In response, the owner agrees to reimburse a predetermined amount (lump sums or regular intervals.) The amount of money received by the beneficiary depends on the type of contract the insurer has agreed on having.

Difference between Life Assurance and Life Insurance

Life assurance has no time set and will definitely pay you in the end while life insurance coverage has a deadline or set time which the occurrence can happen. The value of money on your life assurance increase over time, unlike in life insurance that it stays stagnant. When the person lives the term of your life insurance, it cancels and leaves the person without coverage while life assurance has no limit and your investment on the policy (if there is) will increase over time. Life insurance only pays when the death is during the contract while Life assurance until the person’s death, and no expiry.

Life assurance and life insurance have one main goal, which is to provide and ensure the insurer whenever possible. Whatever their differences maybe, the two has its bad and good side.