While it may not be a common term in the United States, in England you are far more likely to hear the word assurance than Insurance. So what’s the difference? Are they the same life insurance product?
The answer?
Life assurance, term life assurance, whole of life assurance and other variants are always life insurance. However, life insurance is not always life assurance.
Insuranceis defined as an investment designed to protect against a risk of a situation where one would need money. Auto insurance, fire insurance, flood insurance all protect against the damages that may happen and provide adequate money to account for damages to the insured property.
assurancedifferent is that dying is not something that may happen – it is something that will happen, no matter what. So an assurance policy is not set to protect you if you die but when you die. You can assure death if there is no assigned conditions that make death more damaging.
Example: Accidental death policies are designed to insure for the risk of death in an accident. You cannot assure that someone can only die from an accident. Hence, accidental death policies are a form of life insurance but not of life assurance. |
