What is the difference between "life assurance" and "life insurance"?
(R. M. Lakshmi, Madurai)
There is no difference; some companies call themselves "life insurance" companies, while others call themselves "life assurance" companies. They both do the same job. I understand that the term "Assurance Company" is mostly used in countries where English is not spoken as the first language — for example, in countries like Germany, Egypt, and the Philippines.
There is, however, a difference in meaning between "assurance" and "insurance". One normally "assures" against something that will definitely happen — for example death. No matter how important we are, none of us can escape death. It is inevitable. You usually "insure" yourself against something that may or may not happen — for example, fire, burglary and flood. Not all of us will have our house destroyed in a fire accident. But some of us do buy "fire insurance" and "flood insurance".
S. Upendran
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Karnataka
Chennai
Coimbatore
Hyderabad
Madurai
Tiruchirapalli
Vijayawada
Visakhapatnam
