Life Insurance and General Insurance in India: Important Points
Life insurance:
Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract between an insured (insurance policy holder) and an insurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events.
What are the main products of life insurance?
- Whole life
- Term
- Life annuity
- Endowment
- Investment – linked
- Medical and health
General insurance
General insurance is basically an insurance policy that protects your against losses and damages other than those covered by life insurance. The coverage period for most general Insurance policies and plans in usually one year, whereby premiums are normally paid on one-time basis.
What are the risks that are covered by general insurance?
- Property loss (e.g. stolen car or burnt house)
- Liability arising from damage caused by yourself to a third party
- Accidental death or injury
What are the main products of general insurance?
- Motor insurance
- Fire/House owners/Householders insurance
- Personal accident insurance
- Medical and health insurance
- Travel insurance
List of Major General Insurance companies in India – View Here
