Could you please let us know the difference between Term insurance and assurance?
There is no difference between term insurance & assurance. Do not fret over these words. All term insurance products in India should actually be called term assurance as they guarantee the total Sum Assured in the event of death of insured.
For your academic knowledge, all insurance products are based on one of the 2 principles –
1) Indemnity, 2) Fixed Benefit
Indemnity products compensate you upto the extent of loss, subject to other policy limits, if the loss is less than or equal to the total cover/Sum Insured. Health Insurance is an example of indemnity product.
Fixed Benefit products pay you the total cover amount regardless of the quantum of loss. On some attention, you’ll realize that term insurance belongs to this type of product. Since they assure you payment of the total cover amount in the event of loss, such products are called assurance products. Other examples of assurance/fixed benefit products are Personal Accident, Critical Illness, etc.
Feel free to revert if you have any questions. Thanks