Insurance and assurance over the years have however been contradicted that said to mean the same thing but as a product sold as well as the qualities, they offer but is this actually true?
Can this claim of both products having exactly the same offer be true?
This will be discovered in this article as it will be expository in terms of teaching as well as differentiating the both terms and bringing out silent importance to which and how the both concepts seems to be similar and dissimilar.
Insurance is said to be an arrangement by which a company or the states undertakes as well as provide a guarantee of comprehensiveness foe a stipulated loss, damage, illness or death in return for payment of an agreed premium. Thus; it is worthy to note that in this kind of transaction, it involves an exchange; the premium is given in exchange of the stipulated loss or damage. It is also important that we note that in insurance it involves different aspects as well as types. Thus; there are some of known to be life insurance and some known to be auto insurance etc.
Assurance can be said to be the financial coverage that provides remuneration for an event that is certain to happen. It is important and as well relevant that we note the important key words found in the definition above of which entails the certainty. So, while in one there is a certainty the other does not involve the certainty of the event. At this point it is now important if we go into details in proffering the difference between insurance and assurance as a term.
- How do they interface?
- What are their difficulties as well as similarities?
- What are the advantages in their similarities?
The following are the primary differences as well as similarities in both products (Insurance and Assurance):
- In Insurance the major objective is to replace the actual state of the insured when damage is done as well as reinstate the insured whereas in assurance it is there to merely pay the agreed amount in the contract when damage occurs.
- The both of them are geared towards getting one covered.
- I assurance it is taken in certainty whereas in insurance the risk is either prevented or cubed.
- Insurance is based on the principle of indemnity whereas assurance is based on the principle of certainty.
- The tenure of insurance is generally less while that of assurance is more.
Insurance is said to be based on an unexpected event that has been put more effort to stop whereas in assurance it is an expected risk.
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