An assurance policy is somewhat similar to an insurance policy, apart from the fact that your nominee will receive the exact amount they have decided. However, they can only claim the policy upon your demise.

Now that you have got a clear idea about both, you must proceed to find out the insurance vs assurance differences, to clearly highlight their individual benefits.

The advantages of insurance policies are as follows:

• At times you can raise more than one claim on your policy.
• You can renew this policy every year to prevent its expiry and continue to enjoy the benefits with a single policy.
• You will only have to pay a little extra to renew a plan on its expiry.
• Policyholders can enjoy tax benefits on the premiums of these policies, ensuring sumptuous savings on the same.
• You can also benefit from a No Claim Bonus (NCB) if you do not raise a claim in a single year.

However, there are several advantages of assurance policies as well.

Following are the advantages of assurance policies:

• You can get tax benefits, maturity benefits and death benefits on some of the types of insurance policies like TROPs, endowment plans and ULIPs. This allows you to save substantially on the premiums and the claim amount.
• Your loved ones stay financially protected after your untimely demise.
• Your nominee can use the sum assured to furnish their current lifestyle, accomplish future goals, and pay off any liability.
• The nominee will receive a sum assured that you have negotiated with your insurer at the time of purchasing the policy,

However, only knowing the difference between insurance and assurance policy and the advantages of each is not enough to make the right choice. You must also consider their disadvantages and your actual requirement while selecting the appropriate policy.