There has been a lot of talk on insurance in the country since the corona virus (COVID-19) pandemic. Along with health insurance, awareness has also increased among people regarding life insurance.
There has been a lot of talk on insurance in the country since the outbreak of the Coronavirus (COVID-19) pandemic. Along with health insurance, awareness has also increased among people regarding life insurance.
However, even today there are people who do not understand the difference between Life Insurance and General Insurance. Let us understand both the types of insurance today. This will give us an idea of the difference between the two:
Know about Life Insurance
As the name suggests, life insurance provides coverage to your life. Life insurance helps your family in monetary relief (in rupees) in difficult times. Life insurance policy is a contract made between an individual and an insurance provider.
Under this, the insurance company gives financial protection to the policyholder in lieu of monthly fee/fees.
According to this contract, if any type of accident happens to the insured person and he dies in that, then the insurance company pays a sum assured to his nominee (family member).
What are the different types of Life Insurance? (Types of Life Insurance)
Term Life Insurance Plan: It completely covers the risk.
Unit Linked Insurance Plan (ULIP / ULIP): Along with insurance, there is an opportunity for investment.
Endowment Plans: Insurance and Savings
Money Back Plan: Periodic Returns with Insurance
Whole Life Insurance: Whole Life Coverage for Life Assured / Whole Life Coverage for Life Assured
Child plan: Children’s life goals (Jeevan Mission) like education and marriage
Retirement Plan: Income After Retirement (Income)
Know about General Insurance (What is General Insurance)
Such insurance products which do not come under the purview of life insurance are called general insurance. Various forms of general insurance include fire insurance, marine insurance, motor insurance, accidental insurance and many other types of non-life insurance products.
There is a risk of loss of physical assets and hence the need to protect the economic value of such assets.
For this purpose, General Insurance products were brought so that they can provide protection against unexpected events like loss or damage to properties. Like life insurance, premiums have to be paid in case of general insurance policies also.
Health Insurance: Under this insurance, the insured gets coverage for the treatment of any kind of disease or medical expenses.
