Find out why some companies call it life insurance and others life assurance

Buying life insurance should be easy, so it doesn’t help when some people call it life insurance and others call it life assurance! So what is the difference?

Insurance vs Assurance

It is generally considered that the term “insurance” refers to providing cover for an event that might happen in the future, whereas “assurance” refers to providing cover for an event that is certain to happen.

We all know that the only certainties in life are death and taxes, so you might think that we should always use the word assurance instead of insurance. However, insurance can cover a period of time, after which the policyholder no longer has an insurance policy at all. If the policyholder outlives the term of the life insurance policy then the contract between the policyholder and the insurer expires and no payment will ever be made.

Life insurance will only have value if you make a claim, so in that respect it works like car insurance. Life assurance however can work a little differently. With life assurance you may have an investment element, which will build up with the success of the insurance company’s investments over the years. With life assurance you can get protection if you die, but also the possibility of a bonus if you do not.

Cheap life insurance or life assurance

On the whole though, UK companies tend to use life insurance and life assurance interchangeably, and it doesn’t really matter what the protection is called as long as you understand what you are buying and that the cover is suitable. Click on ‘Get a Free Life Quote’ and find your best life insurance (or life assurance!) deal.

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