Mortgage Broker Q&A; What’s the difference between life insurance and life assurance?
Author: Andy Bedford » Publish Date: 18 September 2009
Question; What’s the difference between life insurance and life assurance?
Assurance is cover for an inevitable event, so in the case of life assurance, the policy always pays out unless cancelled; it will run for the whole of your life and inevitably pay out when you pass away.
Life Assurance is, therefore, an investment.
Life insurance will run for a specific term and only pay out if you die within the term, or in the case of many policies, are diagnosed with a terminal illness before the final year of cover.
Should you survive the term, there would be no return on the premiums. But this also means that life insurance would generally be considerably cheaper than life insurance.