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This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 August 2010
What is the difference between life insurance and life assurance policies?
Whether they are same or different?
Whether they are same or different?
21 August 2010
In general, the term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen.
Life insurance policy provides cover for a set period of time. If the worst were to happen during that time (and there are no complications), then the insurance company will be required to pay out the agreed sum to the beneficiary.
Life Insurance insures you for a specific period of time. Then if you die whilst the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term, the policy is finished and has no residual value whatsoever. Even whilst the Life Insurance policy is in force it only has any value if you have a claim – in that context it’s just like your home insurance!
Life assurance is different from insurance, and will always result in a payment. This is achieved by combining an investment element along with and an insured sum. This means that over time the value of the policy can increase as the investment bonuses are added. If a person covered by life assurance were to die, then the insured sum would be paid out, alongside the investment bonuses which would have accrued over time.
A Life Assurance policy joins a guaranteed insured sum with a none guaranteed investment, the value of the investment being directly related to the size of the guaranteed sum on your policy, the number of years the policy has been in force and Insurance Company’s investment performance.
In general, the term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen.
Life insurance policy provides cover for a set period of time. If the worst were to happen during that time (and there are no complications), then the insurance company will be required to pay out the agreed sum to the beneficiary.
Life Insurance insures you for a specific period of time. Then if you die whilst the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term, the policy is finished and has no residual value whatsoever. Even whilst the Life Insurance policy is in force it only has any value if you have a claim – in that context it’s just like your home insurance!
Life assurance is different from insurance, and will always result in a payment. This is achieved by combining an investment element along with and an insured sum. This means that over time the value of the policy can increase as the investment bonuses are added. If a person covered by life assurance were to die, then the insured sum would be paid out, alongside the investment bonuses which would have accrued over time.
A Life Assurance policy joins a guaranteed insured sum with a none guaranteed investment, the value of the investment being directly related to the size of the guaranteed sum on your policy, the number of years the policy has been in force and Insurance Company’s investment performance.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
29 September 2010
THANK U SIR
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