What does Assurance mean?

Assurance is term which can be defined as being a contrastive term to Insurance. While an insurance policy works as a protective measure in case something (accidentally or not) happens like fire damages or theft for example, Assurance is a compensative and protecting measure against circumstances that sooner or later will definitely occur.

Assurance explained

The two notions are somewhat similar, with the only difference being that insurance covers for probable event, while Assurance for certainly incurring ones. A major difference between a term life insurance and life assurance is that while in the first case the policy holder is being insured for a set period of time like 10, 20 or 30 or years at most, and if the death of the policy holder occurs within the period his policy covers for he is entitled to receive his/her payments from the company; while in case he/she dies after it expires, there is no payment whatsoever. Life assurance starts the process of payment upon the death of the policy holder, whenever it occurs in time.