What’s the difference?!
So, do you have a life insurance or a life assurance policy? Strictly speaking, you could have either. Each one is correct, but they are different things. Life insurance refers to a product that will payout a lump sum benefit if you die during the term of your policy. An example of this would be your mortgage protection policy. If you die during the policy term, the insurance company will pay out enough money to clear the outstanding balance of your mortgage. If you do not die during the policy term, your policy will end and you will receive nothing.