Compare Life Assurance: Same Difference

2007-03-08 10:33:40

( Insurance )



MATTER OF SYNTAX

If you compare life assurance from life insurance, the difference is but a matter of syntax as these two are often used interchangeably. However if you are going to be strict about it, an assurance is protection against an inevitable event, while an insurance is policy protects against something that may or may not take place at all. In British English there is no such term as life insurance, only life assurance.

A life assurance policy therefore is the better, more accurate term for what we commonly refer to as life insurance because you are buying a policy that tries to cushion the negative effects of a loved one’s death. Since the condition is the insured’s death, it is actually a life assurance policy because death is something that will happen to everyone.

PROETECTION AGAINST THE INEVITABLE

In the industry, the lines between life insurance and life assurance policy are indistinct because most often one term is used to refer to the other. But there some distinctions, if you compare life assurance policy from insurance, the maturity of the policy is contingent on the insured’s demise. Therefore when the insured dies, the cash value of the policy is assured to the beneficiaries regardless of whether the policy has a prescribed validity period.

Under life assurance, the payment is assured if the main condition is met. Examples of life assurance are term life assurance and whole life assurance. If you want to take a life assurance policy, it is imperative that you know the different types and each type’s salient points and features.

If you want to compare life assurance from one company with another, make sure that you are using the same parameters. Be careful because you might see a life assurance quote that is very affordable, but you actually end up with a life assurance policy that is not so assured at all.


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