Life assurance and life insurance are two different types of financial products. Many people consider life assurance and life insurance as the same, however, there is an important difference between the both. Life insurance provides coverage for a certain length of time, whereas life assurance covers an entire lifetime. In this article, we will compare both life insurance and life assurance as well as the advantages and disadvantages of both. We'll also offer some tips on how to choose which policy is best for you.
What is Life Insurance?
Life insurance is a financial product that provides coverage for individuals in the event of death. The purpose of life insurance is to provide financial protection for your family and loved ones. It will help them cover the expenses in case you die prematurely. This is why it’s important to have life insurance, especially if you have a family that relies on your income.
Life insurance will enable your family to continue living a financially secure lifestyle in the event of your unfortunate death. You can get term insurance plans or savings plans for life insurance and find out which option is better for you with this guidance. In this, the insurance company agrees to pay you if anything happens, in exchange for monthly/yearly premium payments over time. These payments are called premiums.
There are different types of life insurance policies available such as
- Term Life Insurance Policy
- Endowment Life Insurance Policy
- Unit Linked Life Insurance Policy
- Retirement Life Insurance Policy
- Child Life Insurance Policy
- Money-Back Life Insurance Policy
What is Life Assurance?
Just like life insurance, Life assurance is a contract that pays out a lump sum amount of money in the event of an unforeseen death. It is designed to protect your dependents and loved ones from financial hardship by paying out a lump sum amount at the time of your death. But it pays out a tax-free amount to the policyholder’s nominee in case of the unfortunate death of the policyholder. Though, life assurance generally covers the life assured for their whole life. So it is called the “whole of life” assurance.
Difference between Life Insurance vs Life Assurance
Both life assurance and life insurance can provide peace of mind to your family in the unfortunate event of death by providing a lump sum. This can be used to manage finance for your children’s education and retirement, pay back the mortgage, or cover other budgeting requirements. The main difference between the both is that life insurance provides you coverage for a set term whereas life assurance provides you coverage for your entire life.
|
Life Assurance |
Life Insurance |
| Premium is high as compared to life insurance because of its indefinite length of term |
Premium is low as compared to the whole of life insurance product |
| The whole amount of sum assured will pay upon the death |
Life cover is based on the length of the policy term you have chosen |
| These sometimes include an option for investment |
There is no investment element option |
| Pays out the assured sum when the event takes place. |
It helps to reinstate financial stability. |
| Life Assurance is a long-term contract |
Life Insurance is a short-term contract |
Which One Should I Choose Life Insurance vs Life Assurance?
Both life insurance and life assurance provide financial security in case of unexpected events happen to you. But life insurance provides coverage for a fixed tenure, whereas life assurance provides coverage for the entire lifetime. The decision to either get life assurance or life insurance will depend on your requirements and what you are looking for in terms of benefits.
For example, if you want that your mortgage will be covered in case of your death, then life insurance is the right option for you. If you want peace of mind that your family members will receive a lump sum amount whenever you die then life assurance is the right option for you. So, the choice of both life insurance and life assurance depends on the individual needs.
How to Get Affordable Policy Online
PolicyBachat is an online insurance web aggregator which helps in selecting insurance policies online for its customers based on the customer’s requirements. Please visit our portal to compare insurance policies from top insurance companies and select the best policy which fits all your requirements. Following are the steps to get affordable life cover online at PolicyBachat.
- Visit the Policybachat Website and select the ‘Life’ tab.
- Enter your Name, Date of Birth, and Mobile Number.
- Click on the ‘View Plans’ button.
- Just Answer 5 Simple Questions.
- Select your ‘Gender’.
- Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
- Select your ‘Annual Income’.
- Select your ‘Education Qualification’.
- Choose your ‘Occupation Type’.
- Enter your ‘Email Address’.
- Then click on ‘Start Saving Money’.
- Premium quotes of top life insurance plans will be displayed as per data entered by you
- Compare them and pick the best one as per your requirement.
Conclusion
Life insurance is not the same as life assurance. Life insurance only covers you for the term of your policy, whereas life assurance also provides cover for your whole lifespan. All types of insurance rely on a risk assessment and so your premium will depend on several factors, including age, health status, gender, habits, etc.
Related FAQs
How Much Does it Cost to Get Life Assurance or Life Insurance Coverage?
The cost of life insurance or life assurance premium amounts will depend on your age, health, lifestyle, and income. For an instance, a young individual who is a non-smoker and is in good health will pay a lesser amount for life insurance or life assurance than an individual who is a smoker and has pre-existing diseases.
What are the Advantages of Life Insurance and Life Assurance Products?
The advantage of life insurance is that the premium amount is lower than the life assurance and you can choose for how long you want coverage.
The main advantage of life assurance is that you will get the cover for your whole life, although if you select an investment-linked plan, the sum your loved ones will get during the claim is not guaranteed.
What is Life Insurance vs Life Assurance?
Life insurance is a contract between the policy owner and the insurer where the insurer agrees to pay an amount of money in exchange for a promise that it will pay for the policyholder’s death benefit for a fixed period. On the other hand, life assurance is a contract between two parties (the assured and the assurer) where one party (the assured) pays an amount of money to another party (the assurer) in exchange for some kind of promise for the whole life. Life assurance can be used to provide financial security in case of unexpected events such as death, disability, or illness. It can also be used as a way to save tax-free income or to purchase an annuity.
What are the Benefits of Life Insurance?
Life insurance is a type of insurance that covers the loss of life. It can help you and your family in case something happens to you. It's important to know what the benefits of life insurance are before you buy one. You can find many types of policies, so it's important to choose wisely what is best for your needs.
There are various benefits of life insurance.
- Financial Security
- Long Term Savings
- Tax Savings
- Save Money
- Peace of Mind
How can I Get Affordable Coverage for My Family?
It is hard to find affordable life coverage for your family. However, there are still ways to get affordable coverage. There are a few things that you can do to find affordable coverage for your family:
- Research the different policies and companies
- Shop around and compare prices on different plans.
- Get help from an online insurance agent who can offer advice about the best options that fit your needs, budget, and lifestyle.