KEEPING INSURANCE HUMAN
back arrow Back

Difference between Term insurance and assurance?

reply Share
22 May, 2021 by  Rahul G

Could you please let us know the difference between Term insurance and assurance?

like like
0
Term Life Insurance

1 Answer

Post
22 May, 2021

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

like like
0
icon-comment 0 Comments
icon-reply Reply
Discover the best tips for insurance every week!

Beshak is not regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and does not have any alliance or association with any Insurance business.
© Copyright 2021 Beshak Solutions Pvt. Ltd. All Rights Reserved.

Disclaimer: The content on the website is purely for information purposes for the public at large, and does not constitute personal financial advice for a specific individual reader.
If you are reading this, it means you love reading the fine print. Why not get paid for what you love doing - Join us by writing to info@beshak.org now 🙂