Life Insurance and General Insurance

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The insurance plans which covers the life-risk of an individual is called Life insurance. On the other hand, the insurance plan which covers any risk other than the life- is called general insurance.

What is Life Insurance?

Life insurance is a protection against financial loss that could result from the premature death of an insured individual. In case of death of the insured, the nominee receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. In case the life insured survives, he or she gets the survival benefit as per the policy term.

Life Insurance is a long term contract which requires the payment of premium by the life insured throughout the minimum premium payment term or till it matures. 

What is General Insurance?

General insurance is a contract that covers any risk other than the risk of life. The General Insurance safeguards our health and our property, such as home, car, and other valuables from fire, theft, flood, accident, earthquake etc. These are the contract of indemnity, wherein the general insurer promises to make good, the losses occurred to the insured. These contracts are of short term in nature - generally one year - and therefore, the policy renewal is required every year.

There are many a type of General Insurance policies and the common ones for an individual is – Mediclaim Insurance, Motor Insurance, Home Insurance, Travel Insurance and Fire Insurance etc.