Life Insurance Vs Life Assurance

If you are among those who think life insurance and life assurance are the same thing, you are certainly wrong. However, you are not alone as this misconception is common in the world of life insurance. Hopefully, by the end of this article you should be able to differentiate between life insurance and life assurance.


Life insurance gives you and your loved ones financial protection for a definite period of time. Most life insurance policy typically lasts from 10, 15, 20, 25, and 30 years. Unlike life insurance, life assurance provides coverage until the event of your death. Life assurance is often referred to as permanent or whole life insurance.


When compared to the premiums you pay on life insurance, life assurance premiums are expensive. The reason for this is that life insurance does not guarantee that your beneficiaries will get a payout when you die within the period of your life insurance policy. In contrast, life assurance guarantees that your death benefit will be paid to your family in the event of your death.

Death benefit

With life assurance, a percentage of your premium is invested by your life insurance company. When you die, your loved ones will receive the guaranteed death benefit in addition to the returns of your invested premiums. In the case of life insurance, your family will only get your death benefit. Also, if you live longer than your life insurance policy, you won’t receive any death benefit and neither will your premiums be refunded to you.