What is the difference between life assurance and life insurance?
Many people think that life assurance and life insurance are the same thing, yet there is a subtle but key difference between the two.
Life insurance is protection for the term of the insurance cover. If you die during the term of the policy, the insurance company will pay a tax-free sum to your beneficiaries. But, if you outlive the term of the policy, your beneficiaries will not receive any payment.
Life assurance on the other hand is not based on the principle of protection for a fixed term and instead means you are covered until you die. Therefore, with life assurance, typically a payment is made when the policyholder dies.