Reply To: Difference between Assurance and Insurance

[simranParticipant]

Assurance is basically when some payment will be surely given because risk will happen for sure..for eg in whole life death will surely happen so this is case of assurance.

Term is not an assurance because if a person didn’t die within a specific period, payment will not be made.therefore,it’s an insurance.

Similarly endowment is also an assurance because payment will be made if a person dies within a specific period or at maturity.

So in short in which payment will be payed definitely comes under assurance (payment assured) and which there’s a probability that a payment will be made it comes under insurance.

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