Insurance and Assurance
Insurance is a means of protection from financial loss. Insurance is generic for all types of insurance and assurance. However, insurance differs from assurance in that insurance covers risks that may occur e.g. theft, fire, accident etc., and assurance covers events that will occur such as death.
The parties to the insurance contract are the insurer (the company offering protection) and the insured (the person seeking protection). Payments are made by the insured for this service. The price charged for insurance is called a premium. The contract is known as the policy.