Difference Between Insurance
and Assurance
  • Difference b/w Insurance & Assurance
  • Types of Insurance & Assurance
  • Coverage under Insurance & Assurance
difference between insurance and assurance
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Health Insurance Plan for you.

Get upto 15% Online Discount*

Select Members You Want To Insure

Age of Eldest Member

The Difference Between Insurance and Assurance

Two terms are commonly used in the financial market i.e. insurance and assurance. Usually, people get confused between these two terms as both of these terms are generally used in the insurance sector. However, there is a thin line difference between these two. Let's take a look at the differences between insurance and assurance in detail.

What is an Insurance?

Insurance is defined as a contract between the insurance company (insurer) and the person who is buying the policy (policyholder). This contract states that the insurance company will compensate the policyholder in case of an unforeseen incident, medical and otherwise. This compensation is provided in exchange for a predefined amount i.e. insurance premium paid by the policyholder on a regular basis.

For example. Mr. Akhlag purchases a health insurance to obtain financial coverage for future medical emergencies for himself and his family. The health plan provides cashless and reimbursement hospitalization in the network hospitals. Now, if one day, Mr. Akhlag suffers a sudden heart attack and is taken to a network hospital of the health insurance company he has bought the policy from, his entire treatment would be cashless and he will not have to pay for any treatment in the hospital.

Insurance saves you from burning a hole in your pocket at the time of emergencies.

Types of Insurance

  • Health Insurance
  • Travel Insurance
  • Corp Insurance
  • Property Insurance
  • Home Insurance
  • Motor Insurance

Health Insurance Companies

What is an Assurance?

Assurance and insurance are very similar as they both provide financial protection. Assurance offers reimbursement of a predetermined sum amount in case of an unavoidable event such as death, disability, or when the policy tenure is over. This type of protection is usually offered in life insurance policies, which are further divided into three categories of Life Insurance: Whole Life Insurance, Term Life Insurance, and Annuity.

For example: Mr. Dewan bought an endowment plan with a sum assured of INR 50 Lakhs for himself. This type of policy offers two types of benefits. If Mr. Dewan survives the policy tenure then he will get the total lump sum amount from the insurance company. If Mr. Dewan dies within the policy tenure then the insurance company will pay the lump sum amount to the nominee of the policy.

Types of Assurance

  • ULIP
  • Whole Life Insurance
  • Term Insurance

Make Health Your Top Priority Banner

Complete Health Suraksha Banner

What is the Difference Between Insurance and Assurance?

Both insurance and assurance may sound similar, but they have very minute differences.

We at PolicyX.com are trying to show you the detailed differences between insurance and assurance in a tabular format:

Parameter Insurance Assurance
Category General Insurance Life Insurance
Objective To compensate for the loss. For example, loss incurred during an accident, theft, fire, flood, etc. To provide monetary support for a specific situation. For example, disability, death, a major illness, etc.
Types of Policies Motor insurance, health insurance, home insurance, mobile insurance, etc. Life insurance, term insurance, ULIP, endowment plans, etc.
Claim Payment Claim amount is not pre-decided. It is Approx. equal to the amount of loss. For example: hospitalization bills, the cost of repairing/replacing vehicle parts, etc. Claim amount is pre-decided for a specific event or situation. For example, a major illness like cancer, heart disease, the death of the policyholder, etc.
Number of Claims Allowed Multiple Only one
Renewability On an annual basis Not applicable
Coverage Home insurance, health insurance, property insurance, motor insurance, etc. Life, death, and disability cover.
Number of Insured One or more people depends on the nature of the insurance plan. It includes only one person in the account
Nature of Risks Unpredictable risks like fire, accidents, etc Usually uncertain but predictable risks like death
What is Insured? People and/or property People

Conclusion

Buying an insurance policy ensures that the insurance company will assist you financially in the event of a loss or damage to you or your property under general insurance, and you will receive a good return on the maturity of the policy under life insurance or term insurance and in the event of your death, the nominee will receive the sum insured amount.

Insurance industry professionals also recommend that you should buy your insurance policy online because it will be more cost-effective and helpful to you than buying it offline. You will save money on an insurance agent if you purchase the policy by yourself, and you will be able to discover more about the plan. Apart from this, you can compare different plans and premium rates from the convenience of your own home.

Health Insurance Articles

What Our Customers Have to Say

Customer Review Image

Durgesh Kumar

Jaipur

March 25, 2023

Best health insurance claim mere leg ka surgery hui h 22.03.2023 ko 2 hrs m claim approval aa gya tha mari policey ko 7 month hi hua h mera claima 44000 rupaye ka tha 100% company n pay kiya h ...

Customer Review Image

Ajay Kapoor

Delhi

March 24, 2023

Bad experience operate 6th jan 2023 my claim no 31418820 Ajay Kapoor mob 7838722273 till date 24 mar 2023. No reimburse ment amount 67367 not recd . always demand new query. I send you after op...

Customer Review Image

Ranjan Kumar Verma

Patna

March 5, 2023

मैने 2016 में PolicyX.Com से Health Insurance Online Purchase किया था। अभी 2021 से मैं STAR HEALTH का Policy continue किया हूँ...

Customer Review Image

Tarun

Ludhiana

February 21, 2023

I got payment with in 3 working days. I am glad how Vomitha ma am who s the executive, listen me carefully and release the payment directly to my account. Thanks Acko

Customer Review Image

sandeep singh

Chandigarh

January 12, 2023

Dnt buy any policy from Star health They are big fraud my father is admitted in hospital crucial stage they reject our claims without reason i will filled case against company in consumer court...

Customer Review Image

Poonam Sinha

Surat

December 9, 2022

Mujhe khaas kar inki service best lagi. Policyx se mai hamesha services lungi. Maininki services se khush hu

Customer Review Image

Anita srivastava

Delhi

December 9, 2022

Policyx helped me a lot in documentation process, I was skeptical at first but they made my work easy.

Customer Review Image

Nishant

Lukhnow

December 9, 2022

Omg when i was buying the policies I was o skeptical. I contacted policyx and they solved my confusions and even helped in my documentations.. They are the best .

Naval Goel

Reviewed By: Naval Goel

Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.