Different Types of General Insurance

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

Difference between General Insurance & Life Insurance

Life insurance provides coverage for your life. If a situation occurs wherein the policyholder has a premature death within the term of the policy, then the nominee gets the sum assured by the insurance company. It is one of the most important financial instruments. Life insurance is different from general insurance on various parameters.

General insurance policy is a short-term contract whereas life insurance is a long-term contract.

In the case of life insurance, the benefits and the sum assured is paid on the maturity of the policy or in the event of the policy holder’s death. On the other hand, in the case of general insurance, the claim or the actual loss amount is reimbursed when a specific event occurs.

Because the contract of life insurance is long-term in nature, the premium is paid all through the term of the policy or until the minimum premium paying term. As far as the premium of general insurance is concerned, the premium is paid if the policy is renewed in the next year.

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