Difference Between Life Assurance and Life Insurance
Life is assured or insured so as to protect and individual’s loss against any accidents. Life Insurance and Life assurances are policies which are bought by any individual. The person buying any insurance policy has to pay a fixed amount in installments. These installments may be monthly, quarterly, half yearly or yearly. The amount may be paid in a single premium.
Life assurance is an insurance policy which compensates the policy holder on his death. A person having the policy has to pay a regular premium in one of the modes described earlier. When a person dies naturally, the insurance company gives a definite amount of money to his survivor who is a person nominated by the insurer. In this way, if you are responsible fellow, you will leave certain amount of money for the rest of the family after your death.
Life Insurance is also an agreement between the policy owner and the insurance company which has to pay agreed upon amount at a person’s death. The insurance also covers any critical illness. The policy holder has to deposit a fixed amount in installments in the manner describe earlier. The compensation amount is given to the beneficiaries according to the bond signed between insurer and insured.
Difference between Life Assurance and Life Insurance
There is some difference between life assurance and life insurance. In life assurance there is no set time. The insurer will pay you in the end. On the other hand Life insurance has a time limit under which an incident can happen. After the time is over, and incident happens, then the insurer will not pay. It only pays for an incident within a fixed duration of time. The amount of money on life assurance keeps increasing over time. On the other hand in life insurance the amount will be fixed. Life assurance has no expiry date and pays at his death, no matter when it occurs. But Life insurance pays for the death within a fixed term.