Life Insurance Cincinnati Ohio OH

Reader’s Question:

Good day folks, I just became aware of the words Insurance and Assurance which I read in an ad in Jackson Mississippi. Are they different in the context on life insurance policy? I’d appreicate if you can briefly explain. Thank you!

Carl

Cincinnati, OH

Hi! I’m glad you have the time to ask question in our website. Don’t worry because I will give you a definite answer.

In other countries, the particular uses of the terms insurance and assurance are sometimes confused. Most common, in law court insurance refers to providing cover for an event that might happen, while assurance is the provision of cover for an event that is certain to happen. However, in the some countries both forms of coverage are called insurance.

Most of the people insure their life they do so knowing that one day they will die. So a policy that covers death is assured to make a payment. The policy offers assurance on death; even if the policy has set down termination date the policy is still assured to pay on death and therefore is an assurance policy. Examples include the word Assurance and Whole Life Assurance. When somebody died in an accident, the death policy is not assured to pay on death as the life insured may not die through an accident; hence it is an insurance policy.

With an assurance policy, the insured event will definitely happen at some point, while with an insurance policy there is a risk the insured event will happen.

During recent years, the distinction between the two terms has become largely not very clear. This is due to many companies in the U.S. offering both types of policy, both insurance and assurance titles. You can ask a local insurer in Cincinnati, Ohio about these policies.

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