A typical conversation regarding the subject of insurance may not really be the correct term to use at all. It really depends on the context in which it is being used. In fact, there is actually a major difference between the term insurance, one commonly thinks of, and the closely related word "assurance."
Both refer to coverage when something happens, but they are used in different ways. It is good to know the true difference between the related words, so that you will be covered when it really matters.
Absolute Assurance
The term "assurance" refers to coverage that is provided for an event that will in fact happen. It is not a guess, but an absolute understanding that this event will occur sometime in the future. Assurance typically will have a set amount of money that is to be given after the event occurs. This predefined limit will already be chosen before the said event takes place. These events are things such as deaths by illness or disease that the person insured knew was coming. They can usually be planned for well in advance.
Illusive Insurance
The most often used word, "insurance", truly only refers to those things that are unseen. They are events that every person should be covered for, just in case they might occur at some point in time. These are things such as floods, fires, and thefts, that no one could have ever predicted would happen. They may not ever occur, but it would be far better for someone to be prepared than to be stuck when that time does come around. A monetary limit cannot be set beforehand for these events because there is no possible way of knowing the actual amount of damages that may come about from this terrible thing that has now happened.
Understanding both of these coverage terms is important. Knowing that one refers to an absolute circumstance that will happen and that the other is more of an elusive term covering just in case something happens means a difference in the policy you request. Insurance is necessary and required in some cases for everyone, while assurance for a particular event may only be needed when you know for sure that it will be an event requiring coverage. Both types can be purchased from us. We are happy to provide details of which events are covered under each type of policy and whether you truly need insurance or it is actually assurance that need.
If you would like to look into either type of coverage, please feel free to contact Magill Agency Inc. directly at 1-800-878-7105 for further information about Oklahoma Home Insurance, or any other type of insurance need.