Life insurance and genaral insurance

"Difference between life insurance and general 

insurance....👌"

Life Insurance👪

*Meaning:- It is an insurance contract, which covers the life risk of the person insured.

*From:- It is a form of investment.

*Premium:- Premium has to be paid over the year.

*Term:- Long term

*Insurable Interest:- Must be present at the time of contract.

*Insurance claim:- Insurable amount is paid either on the occurrence of 

                                               the event, or on maturity.

*Policy Value:- It can be done for any value based on the premium 

                                       policy.

General Insurance🚨

*Meaning:- Anything which is not covered under life insurance like 

                              motor, house, health, etc.

*From:- It is only a contract of indemnity.

*Premium:- Premium has to be paid a lump sum.

*Term:- Short term

*Insurable Interest:- Must be present, at the time of contract and lose

                                                     both.

*Insurance claim:- Loss is reimbursed, or liability will be repaid on 

                                               the occurrence of an uncertain event.

*Policy Value:- The amount payable under life insurance is confined to

                                       the actual loss suffered.

"Types of life insurance👀"

Term Insurance:- It is pure insurance. It pays your nominee the sum assured in case of your demise within the policy term. It doesn't have any sum assured or maturity amount. The premium is very low.

Unit Linked Insurance Plans{ULIP}:- ULIPs offer life protection as well as the opportunity for capital appreciation by investing in various funds of varying degrees of risk. Just like endowment policies, in ULIPs a certain portion of the premium goes into providing life cover. They generally invest in the equity market, therefore the return is not pre-defined, it depends on the market return. it has a certain lock-in period.

Endowment plans:- These are insurance and investment plan. A certain portion of the premium is paid for the protection of the life and the rest amount is invested in low-risk debt instruments. So at the time of maturity, the insured person gets a predefined amount.

"Types of General insurance😈"

Health insurance:- A general health insurance plan is an indemnity plan that pays for hospitalization expenses up to the sum insured. While you can avail of a standalone health policy, family floater plans provide coverage to all the members of your family.

Home insurance:- A home insurance policy protects your home and its belongings from the damages suffered due to man-made or natural disasters. Some home insurance policies also provide coverage for temporary living on rent, due to your home undergoing renovation. 

Motor insurance:- Motor insurance covers your vehicles against accidents, damage, theft, and so on. This form of insurance comes in two forms comprehensive and third party. 

Travel insurance:- A travel insurance policy protects you against losses suffered due to loss of baggage, delays in a fight, and trip cancellation when you are traveling abroad. In some cases, if you are hospitalized while traveling, travel insurance may also offer cashless hospitalization.