Life Insurance vs. Life Assurance
  • Meaning of Life Insurance and Assurance
  • Differences
  • Which One is Better
Cash Value Of Life Insurance
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Term Insurance Plan for you.

Get upto 10% Online Discount*



The Key Difference Between Life Insurance and Life Assurance

In this complex world of financial planning, understanding the differences between various insurance products is important. Two terms that are often used together but hold distinct meanings are "life insurance" and "life assurance." These two concepts are the most fundamental in safeguarding your family's financial future and play a crucial role in decision-making.

What are Life insurance and Life Assurance?

A life insurance plan is purchased for a fixed tenure and it can range between 5 years up to when the policyholder turns 100 years. While life assurance plan is a whole life plan in which you will be covered for your entire life without any fixed period. There are no saving options in the case of life assurance.

Difference between the two at a Glance


Life Insurance

Life Assurance

DefinitionA life insurance plan is purchased for a fixed tenure.A life assurance plan is a pure/whole life plan.
Pay OutPayout is a lumpsum amount to the nominee in of the death of a policyholder during the policy tenurePays out the assured amount to the nominee after the death of the policyholder.
Maturity BenefitThere may or may not be maturity benefits, depending on the policy.There is no maturity benefit.
Term of the planShort term planLifetime plan
How many claims can be raised?MultipleSingle
Survival BenefitsNo benefit will be receivedAn assured amount is released

Which is better?

When it comes to making the right decision, there may not be one simple and straight answer. It depends on your financial goals, needs, and circumstances. Both policies have their pros and cons. So it's suggested to consult with a qualified insurance advisor to understand which option is suitable for you.

Life Insurance Companies

Compare and buy the most suitable Life Insurance Plan from the below-mentioned IRDAI-approved Life Insurance companies.


In the realm of financial planning, it is necessary to distinguish between various insurance products that are offered to you. Life insurance and life assurance are some of these products. Though their features are slightly different, they both are there to protect your loved ones after your demise. The choice between these two options is not a one-size-fits-all decision. It depends on your unique financial goals, needs, and circumstances.

Difference Between Life Insurance and Life Assurance: FAQ's

1. What is better- life insurance or life assurance?

The major difference is that life assurance covers you for your whole life, while a life insurance policy covers you for a set term only.

2. Why it is called life assurance instead of life insurance?

The insurer refers to life assurance when the cover is indefinite, with no fixed time limit, unlike a life insurance policy term. The word assurance is being used because the policyholder is assured that a valid claim will be paid when they die.

3. Do I need life assurance or insurance?

The decision between life assurance and life insurance depends on your specific financial needs and goals.

4. Is life assurance a good idea?

No doubt, life insurance is a smart investment but it also depends on what you want to do with the policy. But if you just want a piece of mind and want to be assured that your loved ones will be safe, term life insurance is worth it.

5. What is the purpose of life insurance?

Life insurance protects your spouse, children, or any loved one you want to protect from the potentially devastating financial losses that could result if something happens to you.

Life Insurance Articles

Life Insurance FAQs

Life Insurance FAQsSeptember, 2021

What Our Customers Have to Say

Customer Review Image



May 20, 2024

SUD Life term plan truly stands out my expectations as I got SUD Life term plan along with additional riders at very affordable premiums.

Customer Review Image



May 20, 2024

I am impresses with the hassle free and quick claim settlement process of SUD Life. Thanks to PolicyX who guided me to get my claim settled.

Customer Review Image



May 20, 2024

Bought SUD Life Family Income Benefit Rider plan to secure the future of my plan financially even in my absence.

Customer Review Image



May 20, 2024

I was looking for a term plan to secure the future of my family. So I contacted PolicyX and one of their representatives Mr. Vaibhav helped me choose SUD Life term plan.

Customer Review Image

Armaan khan


May 17, 2024

I recently purchased a Pramerica term insurance policy from The customer service team was very helpful in answering all my queries and guiding me through the application process. I...

Customer Review Image

Rahul Yadav


May 17, 2024

PolicyX’s dedicated support made renewing my Bandhan Life Insurance policy easy. I’m absolutely delighted with the service offered by PolicyX Insurance Advisor.

Customer Review Image

Priyanshu Sharma


May 17, 2024

I bought a Bandhan Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.

Customer Review Image

Yash Tomar


May 17, 2024

After getting advice from the PolicyX experts, I chose a Bandhan Life Insurance term plan. Thank you, PolicyX, for helping me buy a term plan at such a low premium.

Priya Singh

Written By: Priya Singh

Priya has been in the content writing industry for over 8 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.