This is an important question, as making the wrong choice in selection here can have catastrophic results.
First of all we need clarity of what is really required as the terms insurance and assurance refer to differing industries.
Generally, the words insurance and assurance are considered to mean the same thing but their meaning is different. The word assurance is used for life assurance policies. The contract of assurance means that the assured will have to be paid sooner or later. This would be for example a death claim, or on maturity of an investment policy. The word insurance is used for fire and marine insurance, commonly referred to as short term insurance. Under the contract of insurance the risk is uncertain and the liability may or may not occur. For example a car may be stolen, might be involved in an accident, or could be hijacked. It might however also not happen.
In context of the sentence however I can safely presume that the reference is to life assurance.
Once again further clarity is required, as there are many kinds of cover, e.g. funeral cover, life cover, medical cover, etc.
The market offers many solutions for each possible kind of cover. There are dozens of insurers each presenting a plethora of options. Furthermore each person is individually rated based on factors like age, income and education. No one company will claim to be the best alternative for every person.
The Financial Advisory and Intermediary Services Act requires that an analysis must be done to ascertain what a person’s financial situation and requirements are. This is necessary to ensure that the consumer makes an informed decision, and is not “sold” a policy by a persuasive agent.
You should contact an accredited financial advisor, explain your situation, requirements and budget, and then go through a process of selecting a suitable option from viable alternatives.
In short, selecting the applicable assurance product can be compared to shopping for clothes. In this instance there is no “one size fits all” solution. Assurance needs to be tailor made.
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