Comparison: Life Insurance VS Life Assurance
Introduction
You may think life assurance and life insurance are the same things. But there are slightly different. The main difference between Life Insurance vs Life Assurance is that life insurance covers the policyholder for some time, and life assurance covers the policy for the rest of their lives.
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What is life insurance?
Life insurance to protect the cover time of the insurance. Suppose you die during the policy. In that case, the insurance company will pay a tax-free amount to your beneficiaries. However, if you exceed the policy period, your heirs will not receive any payment. Read more about Life Insurance and Its Importance.
There are three different life insurance products: pension protection, convertible term life insurance, and term life insurance.
What is life assurance?
On the other hand, life assurance is not based on the principle of protection for a fixed term and instead means you are covered until you die. Therefore, with life assurance, typically, payment is made when the policyholder dies.
Comparison about Life Insurance vs. Life Assurance
The significant difference is the length of the policy between life insurance and life assurance.
Life Insurance
- Life insurance lasts for an agreed period of several years and may vary.
- If you do not die during the life insurance policy, your family will not receive your death benefit.
- With life assurance policies, you may have the option to increase your death benefit during the process, but you cannot reduce it.
- You have the opportunity to choose between level, increase or decrease cover.
Life Assurance
- It is lifetime security.
- Your family is guaranteed to pay when you die.
- There is no name and guarantee of health, which means your family will receive a lump sum or not die for many, many years.
- With life assurance policies, you may have the option to increase your death benefit during the process, but you cannot reduce it.
Also, Life insurance and Life Assurance premiums are usually higher than average life premiums as payment is guaranteed and lasts a lifetime.
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