Life Insurance vs. Life Assurance
- Meaning of Life Insurance and Assurance
- Differences
- Which One is Better
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.
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.
Basis | Life Insurance | Life Assurance |
|---|---|---|
| Definition | A life insurance plan is purchased for a fixed tenure. | A life assurance plan is a pure/whole life plan. |
| Pay Out | Payout is a lumpsum amount to the nominee in of the death of a policyholder during the policy tenure | Pays out the assured amount to the nominee after the death of the policyholder. |
| Maturity Benefit | There may or may not be maturity benefits, depending on the policy. | There is no maturity benefit. |
| Term of the plan | Short term plan | Lifetime plan |
| How many claims can be raised? | Multiple | Single |
| Survival Benefits | No benefit will be received | An assured amount is released |
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.
Compare and buy the most suitable Life Insurance Plan from the below-mentioned IRDAI-approved Life Insurance companies.
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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.
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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.
