Types of Insurance

There is a distinction between the types of insurance one is life insurance and other is non-life or general insurance. As an individual, you will be covered under the Life insurance policy. The reimbursement under the policy can be withdrawn on the event of death or maturity of the policy. On the other hand, a General Insurance Policy will pay for the losses that may occur during the policy period only.

What is a General Insurance?

• A policy or agreement between the policyholder and the insurer which is considered only after realization of the premium.
• The premium is paid by the insurer who has a financial interest in the asset covered.
• The insurer will protect the insured from the financial liability in case of loss.     

Types of General Insurance in India   

• Health Insurance
• Travel Insurance
• Motor Insurance
• Home Insurance
• Commercial Insurance

What is a Life Insurance?

Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime. For the contract to be enforceable, the life insurance application must accurately disclose the insured’s past and current health conditions and high-risk activities.

Types of Life Insurance

• Term Life Insurance
• Permanent Life Insurance
• Unit-Linked Insurance Plan