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Assurance

Assurance

Assurance provides monetary compensation for an inevitable event. The terms assurance and insurance are often used interchangeably, but there is a distinction between the two. Insurance refers to coverage over a limited time, whereas assurance applies to persistent coverage for extended periods or until death. Assurance may also apply to validation services provided by accountants and other professionals.
One of the most common examples of assurance is life insurance. A person pays a premium each month in order to ensure that their family will be taken care of financially if they die. The policyholder knows that they will receive a payout if something happens to them, which provides peace of mind in knowing that their loved ones are taken care of financially even after they're gone.
Another example of assurance is property insurance. If someone's home burns down, they can file a claim with their insurer and receive money to help them rebuild. This assures the policyholder that no matter what happens, they will have some financial assistance in getting back on their feet again.
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