Difference between Assurance and Insurance
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divyagoel61
Assurance is about life assurance and its of 5 types that is wholelife, term, pure endowment, endowment and deferred wholelife. And here insurer knows the fixed sum assured. On the other hand, about Insurance its a general insurance like health insurance, Vehicle insurance etc. and here insurer doesn’t knows about the sum assured. Am I right?
🙄 Mayank Goyal
possibly, but the main difference is Insurance is protection against anticipated but Assurance(edited) is against definite. Say, to indemnify and latter one to assure. Would you want to say that assurance is against definite?? may be its that!! I got your point thankyou for adding one more point.
simran
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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Most frequently asked question in interview : The following points reflect the keu differences between *Insurance* and *Assurance*:
-Insurance provides us protection against events that MAY happen in future for example fires or accidents whereas Assurance provides protection against event that is CERTAIN to happen in future for example death.
-In INSURANCE the amount is paid only if loss occurs to the policyholder whereas in ASSURANCE amount is paid on maturity even if the event does not occur.(Endowment)
-General Insurance like Motor,marine is a type of Insurance whereas Life insurance is a type of Assurance.
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