There are many types of general and life insurance. They are designed to suit your needs and vary in coverage, features, and benefits. Learn about them here.
There are many types of insurance. Usually the discussion is about general insurance and life insurance. But there are many types of this too. They are designed according to your needs and each has different coverage, features and benefits. Many are not aware of this. In simple words, know the difference between life insurance and general insurance and its types.
First understand what life insurance is.
Life insurance works to provide cover for your life. It involves a contract between the individual and the insurance provider. According to this contract, if the insured person meets with any kind of accident and dies, the insurance company pays a fixed amount of money as financial assistance to his nominee or family members. To buy a life insurance policy, a person has to pay a premium.
What is general insurance?
All insurance that does not fall under the ambit of life insurance is called general insurance. In this, in return for paying a premium, the insurance company guarantees compensation for any property damage, accident, illness, etc. That is, general insurance is done to protect the financial value of all property.
Find out how many types of life insurance plans there are…
Term Life Insurance Plan:
This plan is purchased for a fixed term. It fully covers the risks for the chosen term. It does not include maturity benefit.
Unit Linked Insurance Plan:
This plan includes both security and investment. In this, the investment portion is invested in bonds and shares and like a mutual fund, you get units. In such a case, the returns are based on the fluctuations of the market.
This policy has no term, which means you get insurance cover for your entire life. In the event of the death of the policyholder, the nominee gets the insurance claim.
All types of insurance that do not fall under the purview of life insurance, such as health insurance, auto insurance, home insurance, and travel insurance, are all part of general insurance.
In this, cover is available to face all medical related situations. Along with all illnesses, it also covers the cost of hospitalization.
Cover is provided in the event of vehicle damage, accident, theft, etc. It is of two types: third party and comprehensive.
Building a house is very difficult these days. In such a situation, home insurance works to provide cover to your house and the contents inside it.
