Insurance: The legal term for providing coverage for a contingent loss.
Assurance: A term synonymous to insurance.
These two terms are often mixed up because they sound similarly. In financial context, insurance refers to the guaranteeing protection of an object or a person or it means the guarantee in case of loss or damage. Assurance, on the other hand, means to make someone comfortable with a decision and to clarify their doubts. Insurance refers to the protection against an event that might happen, while assurance means the protection against an event that is definite. In other words, insurance refers to the agreement or arrangement which protects someone from incurring future losses. Assurance relates to a statement which inspires confidence or freedom of doubt.
