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 covers the policyholder for a specific term, while life assurance covers the policyholder for their entire life.
What is life insurance?
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.
There are 3 different types of term life insurance products: pension term protection, convertible term life insurance and term life insurance.
What is life assurance?
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.
If you are looking for a life assurance product, please visit our whole of life insurance page.
