Relationship between insurance and assurance

What is the difference between Life Assurance and Life Insurance?

relationship between insurance and assurance

Read our guide to understand the difference between two often confused terms, life insurance and life assurance. When shopping for. Most people do not understand the important difference between Life Assurance and Life Insurance but it's quite simple. Life Insurance insures you for a specific. Differences Between Insurance and Assurance · Jide Webmaster Relationship Between Hospitality Industry And Catering · Vacancy For.

relationship between insurance and assurance

There are various types of insurance products available in the market such as health insurance, life insurance, home insurance etc. In fact, companies have been insuring everything under the sun these days, even body parts such as breasts, legs, denture and voice are being insured.

In life insurance alone, there are policies that provide cover only and the family of the person receive the amount in the event of death of the person and nothing if he survives the period of the policy.

insurance assurance

But majority of people go for insurance policies of limited time period where they receive the amount proposed along with bonus that has accrued at the end of the term of the policy.

Assurance Assurance, according to dictionary means making someone feel comfortable with a decision and clearing his doubts.

relationship between insurance and assurance

If you are assuring someone, you are instilling confidence in him. When a person takes life assurance policy, he gets a cover for his entire life, no matter when his life ends.

relationship between insurance and assurance

Definition of Assurance A form of financial coverage, which provides reimbursement, for an event that is sure to happen sooner or lateris known as assurance.

One of the best examples of assurance is life insurance, which covers the risk of the life of the policyholder.

Difference Between Life Insurance and Life Assurance | Zurich Ireland

On the demise of the insured, the nominee will get the sum assured. In life insurance, insurance policy amount is payable only the occurrence of the event, i. Although, the life insurance also provides for payment of the policy amount at the maturity of the policy by installments. Life insurance is classified into three types: When the sum assured is payable only on the event of the death of the insured is the whole life assurance. When the sum assured is paid in lump sum on the maturity of the policy term is called term life assurance.

When the sum assured is disbursed in the installment on the maturity, rather than one shot payment is called annuity.

Difference Between Insurance and Assurance -

Key Differences Between Insurance and Assurance The following points describe the differences between insurance and assurance: A contract, which provides cover for an event that can happen but not necessarily, like flood, theft, fire, etc.

A provision for coverage of an event, whose happening is certain, such as death, is called assurance. While insurance is based on the principle of indemnity, assurance is a bit different, which relies on the principle of certainty. Insurance provides protection against an anticipated event. On the other hand, Assurance tends to provide protection against a definite event.

relationship between insurance and assurance

The insurance company now has the right to sell off scraps from the car as otherwise you would have made a profit 12 Applying For Insurance Actuary: Person who calculates insurance premiums based on risk involved Insurance Policy: The actual contract of insurance which contains all necessary details such as age, medical history etc 13 Key Terms Affecting Insurance Form Premium: This is the price paid for insurance Loading: Increase in a premium due to an extra risk, e.

Smoking for health insurance No Claims Bonus: Reduction in a premium if the insured person has not made a claim on the policy Assessor: Employed by insurance company to make sure claims made are covered in the policy and investigate the damage 14 Average Clause Limits the value of the claim if you are under insured. Self-employed individual selling insurance on behalf of many different insurance companies Insurance Agent: Employed by one insurance company and sells on behalf of them Exclusion clause:

relationship between insurance and assurance