Main Differences: Insurance

Difference Between Insurance And Assurance

The main dissimilarities or difference between insurance and assurance can be described as follows:

1. Introduction

Insurance: A risk management technique that provides financial safety against uncertain future losses.

Assurance: Financial coverage provided for an event that certainly happens

2. Underlying Principle

Insurance: It is based on the principle of indemnity

Assurance: It is based on the principle of certainty

3. Types Of Risk

Insurance: Uncertain

Assurance: Certain

4. Compensation Payment

Insurance: Payment is made in case of loss only

Assurance: Payment is made in any situation (either loss occurred or after the contract is matured)

5. Contract Duration

Insurance: For one year only

Assurance: For long term ( minimum 5 years to 35 years)

6. Surrender Value

Insurance: There will be no surrender value

Assurance: Surrender value can be received after some years

7. Investment

Insurance: It is not an investment

Assurance: It is a form of investment

8. Insurable Interest

Insurance: Can be measured easily

Assurance: Cannot be measured

Also Read:

Difference Between Life Insurance And General Insurance

9. Subject Matter

Insurance: Property

Assurance: Human Life

10. Examples

Insurance: Fire insurance, auto insurance, marine insurance and other types of general insurances.

Assurance: Different types of life insurance policies

Insurance Vs Assurance (Comparison Chart)

Basis For Difference	Insurance	Assurance
Introduction	Risk management technique of providing financial safety against losses	Financial coverage for certain events
Underlying Principle	Principle of indemnity	Principle of certainty
Risk	Uncertain	Certain
Compensation Payment	In case of loss	In case of loss or after maturity
Duration	1 year	More than 1 year
Surrender Value	No	Yes
Investment	No	Yes, it is an investment
Insurable Interest	Measurable	Not measurable
Subject Matter	Property	Human Life
Examples	Fire insurance, auto insurance etc	Life insurance

I hope this post is helpful to understand the difference between insurance and assurance and to make comparison between them.

Difference Between Life Insurance And General Insurance

The main dissimilarities or differences between life insurance and general insurance can be pointed out as follows:

1. introduction

Life Insurance: A contract in which the insurer (insurance company) agrees to cover the life risk of the insured (insurance policy holder).

General Insurance: A contract in which the insurer agrees to cover the risk of assets and properties (which are not covered by life insurance policy).

2. Protection

Life Insurance: Protection against human life

General Insurance: Protection against loss to properties or assets

3. Nature

Life Insurance: It is a kind of long term investment

General Insurance: Contract of indemnity

4. Period

Life insurance: Longer period (5 to 25 years)

General Insurance: Shorter Period (generally one year)

5. Principle Of Subrogation

Life Insurance: Not applicable

General Insurance: Applicable

6. Surrender Value

Life Insurance: Yes, it can be surrendered and company provides surrendered value

General Insurance: There will be no surrender value

7. Certainty

Life Insurance: Certain

General Insurance: Uncertain

8. Mode Of Payment

Life Insurance: Premium can be paid quarterly, half-yearly or yearly

General Insurance : Lump sum

Also Read:

Difference Between Insurance And Assurance

9. Premium Calculation

Life Insurance: Premium amount of life insurance policy is determined on the basis of the type of the policy, age and health of the policy holder and duration of the policy.
General Insurance: Premium amount is determined on the basis of risk of the assets

10. Form/Types

Life Insurance: Endowment policy, whole life policy, money back policy, child policy etc.

General Insurance: Health insurance, fire insurance, motor insurance, marine insurance etc.

Life Insurance Vs General Insurance (Comparison Chart)

Basis For Difference	Life Insurance	General Insurance
Introduction	A legal contract that covers the life risk of the insured person	A legal contract that covers the risk of assets and properties
Protection	Human life	Properties or assets
It Is	Investment	Contract of indemnity
Period	Longer	Shorter
Principle Of Subrogation	Applied	Not applied
Surrender Value	Yes	No
Certainty	Yes	No
Payment Mode	Monthly, quarterly, half yearly or annually	Lump sum
Basis Of Premium	Age and health of the policy holder	Risk and value of the asset
Forms	Endowment policy, child policy, money back policy etc.	Health insurance, fire insurance, marine insurance etc.

I hope this post is helpful to understand the difference between life insurance and general or non life insurance and to make comparison between them.

Main Differences

Difference Between Insurance And Assurance

Difference Between Life Insurance And General Insurance

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