Insurance is a contract between an insurance provider and an individual, with the objective of providing protection and financial support to the buyer of insurance in times of crisis. There are many types of insurance in the market. You can choose any of these insurance according to your need.
Insurance is a contract between an insurance provider and an individual or entity, with the objective of providing protection and financial support to the buyer of insurance in times of crisis. There are many types of insurance in the market.
You can choose any insurance according to your need, so today let us tell you about general insurance and life insurance. Both of these have their own importance and benefits.
What is Life Insurance?
A life insurance policy is an agreement between the insurance providers and the buyer of the insurance policy. Under this, the insurance company covers the life of the insured. If the policy buyer dies during the term of the policy, the sum assured is paid to the beneficiary named by him. This insurance is usually done to support the family of the insured in case of premature death.
What is General Insurance?
General insurance is a contract between the insurance provider and the buyer of the insurance policy for a specific property. Under this insurance contract, the insurance company indemnifies the insured for the damage caused to the property.
General insurance includes car insurance, home insurance, travel insurance, health insurance, etc. This policy can be different on many grounds. Life insurance covers the life risk of an individual, whereas general insurance covers non-life assets such as vehicle, house, health etc.
Insurance by Nature
General Insurance works on loss basis. That is, it compensates it on the basis of loss. On the other hand, life insurance policy is considered as a type of investment to protect the family of the insured. Compensation for life insurance is paid either on maturity or in the event of death.
Premium Based Insurance
The premiums of life insurance policies are fixed and it is based on the cover amount chosen by the policyholder. On the other hand the premium for general insurance policies varies depending on the condition and value of the property. As the premium of health insurance depends on a person’s age, lifestyle and many other factors.
Sum Insured and Sum Assured
Sum Insured is the amount that is paid under general insurance to the policyholder in case of damage to the property, whereas Sum Assured is the amount, which is paid by the company to the life insurance buyer or his family as claimed by the company. is done after. This amount is fixed.
