There are two types of insurance called as Life Insurance and General Insurance. And insurance plan covers life-risk of insured called life insurance. On other hand, insurance covers risk other than life is called general insurance. Life insurance is also known as assurance. Thus general insurance policies called as insurance.
Comparison between Life Insurance and General Insurance
Both are two different products that serve two different purposes. They also insure against different things. Life insurance is an insurance against loss of life. Whereas, general insurance is an insurance that protects against more general things. There are different products that full under category of life or general insurance.
Again General Insurance has many types of insurance which come under non-life insurance. This article presents you difference between them. Hence, see List of General Insurance Companies in India
As such, life insurance company deal in products covers an individual life and health. General insurance companies on other hand deal in products. Which not cover individual life and health they also cover other financial problem. Apart from them travel insurance policy covers financial contingencies face in travel.
Thus fire insurance policy covers against fire related expenses. Motor insurance policies cover you. Moreover, life insurance companies issue policies for longer duration compare to general insurance. But general insurance companies’ policies are issue for 1-3 years.
In India life Insurance policies make investment for long term in various avenues. Both are own by Govt of India. Life insurance companies insure people. And general insurance companies insure health. Such as fire, loss during transport, non living objects.
What is purpose of life insurance?
Life cover to you is main aim of life insurance. So, you want that your family and dependents can maintain their lifestyle in your absence. But life insurance policy will replace your income to family members. To lead normal life as far as household finances go.
How general insurance works
Insurance works by taking out policy for things you want to protect. It can be for your car, home, or all your material that you work so hard for. These policies are design to protect you financial against risks and events. Your insurance is outline by policy document.
It states that what you are cover for. And what situations are exclude. You need to read and understand policy document before you buy a policy. If something happen this covered in insurance policy. You can make claim for damage or loss. Thus insurance company will assess loss and make payment on valid claim.
Importance of General Insurance
Loss from any kind of financial event will not bother you if you are insure. It is necessary to make all your properties secured. So that you will not left out with nothing. This security can only provide by getting insurance. General insurance includes insurance policies for burglary, theft, and many more. It also covers personal insurances such as accident and health insurance.
Get any of general insurance will leave your mind at peace. General insurance is important because it almost covers everything. It covers even your car, home, and health. Below are various reasons why to get you general insurance.
It will give you peace of mind: Reason why individual get insurance is to have peace of mind. It is only weapon that you can have opposed to any risk or misfortune. For details you can check what is Insurance?
Loss of property will not give you a burden
In case of loss of personal property due to natural calamities or man- made. You will not worry too much since general insurance almost covers everything. As long as you had insured your properties. You will receive enough amount of money depend on agreement and policy that you had agreed upon.
You will be ready for any type of mishap
If you are insure that you are saving or deposit money through premium. Each amount will be useful in times misfortunes or accidents. And insurance company will give back with more interest. Depend on insurance policy that you buy.
Emergencies can handled
You cannot tell what might happen next. And get yourself insured is most practical you can have. And you had met with an accident such as road accident. Your insurer will pay hospital bill. Thus you are diagnosing with serious type of disease. But you will not hesitate to undergo any type of operation as long as you had your health or medical insurance.
Finally, see life and nonlife insurance definition. But check difference between life and nonlife. And you can also see what difference between life and term insurance is. Hence, check how GST will impact Indian life insurance sector.