Insurance is a contract between an insurance provider and an individual or entity that aims to accord security and financial support to the customer in times of crisis. There are myriad types of insurance that one can choose from. Let’s look into two broad categories of insurance- Life insurance coverage & General insurance and learn the difference between them.
A life insurance policy is an agreement in which the insurance company covers the life of the insured. If the policyholder dies during the term of the policy, the beneficiary, as nominated by the insurance policyholder, will be offered monetary compensation. This insurance is often bought to support the category of the deceased in the event of his/her premature demise.
General insurance can be an insurance contract for a particular asset wherein the insurer compensates for any expense of loss/damage pertaining to that asset. The insurance provider is prone to cover the costs of the insured asset in the event of an unfortunate event. Types of general insurance include auto insurance, home insurance, travel go over, health insurance, etc.