Friday, October 31, 2014

Insurance vs Assurance

Insurance is one of the major forms of risk transfer, and it permits uncertainty to be replaced by certainty through insurance indemnity


Insurance

  • Refers to protection against an event that might happen
  • Provides cover against a risk


Assurance

  • Refers to protection against an event that will  happen 
  • covers an event that is definite
  • Assurance policies are associated with life cover
Considerations before opting for insurance

  • Don't risk a lot for a litte
  • Don't risk more than what you can afford to lose
  • consider outcomes of the risk carefully

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