What is the difference between life assurance and life insurance?

Life insurance and life assurance can quite easily be confused. Most people know about life insurance but what exactly is life assurance and what are their differences? Let’s explore.


Life assurance is basically another term for life insurance. It is more commonly known as a ‘whole of life’ policy. It means that the cover of life is indefinite and there is no fixed expiration date. It is called ‘assurance’ as it is guaranteed that a valid claim will be paid regardless of when death occurs, as long as the premiums are paid.


This differs from life insurance which means coverage is only for a certain amount of time. When applying for life insurance, the length of the policy is chosen and if death occurs within that length, the people chosen for the policy will receive a sum of money. However, if death does not occur within the time frame chosen, the policy ends, and money is not paid out.


So, what are the main differences between life assurance and life insurance? Where life assurance guarantees a pay- out upon death, life insurance only guarantees pay- out for death within a time frame.

Life assurance also has higher premiums as there is an indefinite time frame. But the monthly premiums are often cheaper with life insurance.

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