What is General Insurance: Have you ever thought about what happens to your important things like your home, car, and jewelry if someone tries to steal them when you’re not home? That’s where general insurance comes in. It helps keep your things safe from harm or loss. Insurance makes it easy to protect the things you own.
Sometimes grown-ups have something called life insurance to make sure their family is taken care of if they die unexpectedly. And just like that, they can also get insurance to protect their car, health, and home in case something bad happens.
What is general insurance?
General insurance is like a deal between you and a company that promises to help you if something bad happens to your things, like if your house catches on fire or someone steals your stuff.
Sometimes people get mixed up between general insurance and life insurance, but they are actually very different things. Here is a table that explains the differences.
|General Insurance||Life Insurance|
|Covers non-life assets||Covers life of an individual|
|It is not a type of savings||This insurance helps you accumulate savings for future|
|Annual contract with a lumpsum premium||Long-term contract with the option of installment premiums|
|Pays sum assured in case of an eventuality such as theft or accident||Pays sum assured to the nominee in case of the death of the policyholder|
General insurance should be your priority as your assets may get damaged due to an accident or theft. Let’s understand its importance with an example:
Mr. ABC has got a new car, and he is slated to hit the roads. But while driving, his car suddenly gets hit by the other vehicle trying to overtake. This dislocates the left mirror of his car. Mr. ABC is stress-free as he has motor insurance, which will provide financial cover for the damages and he doesn’t have to pay for the damages.
This shows how general insurance can help to eliminate the dent in your pocket by providing cover for tangible assets.
There are various types of general insurance; these include:
- Motor Insurance
- Home Insurance
- Travel Insurance
- Health Insurance
Motor insurance is like a special plan that helps car owners if something bad happens to their car, like if it gets stolen or in an accident. It’s something that people have to get in some countries. It can also help if someone else gets hurt or their car gets damaged because of your car.
Home insurance, or homeowners insurance, is like a special plan that helps protect people’s homes and things inside in case something bad happens. This could be a fire, someone stealing things, or a natural disaster. It can also help if someone gets hurt while on the property. People can choose how much protection they want and how much they have to pay if something happens. It’s important to have this insurance to keep homes and things safe and not lose a lot of money if something goes wrong.
Travel insurance is a type of insurance that helps protect people when they go on trips. It covers unexpected things that can happen like if the trip is cancelled or if they need medical help. Travel insurance can be different depending on what people choose to be covered for. It’s especially important for trips outside the country because medical help can be very expensive in some places. People should think about what could happen on their trip and choose the insurance that’s right for them.
Health insurance is a type of plan that helps people pay for medical care. It can cover things like going to the doctor, staying in the hospital, getting surgery, and taking medicine. Different plans cover different things, but they all help make sure that people can afford to take care of their health. Health insurance is really important because medical care can be really expensive, and without insurance, people might have trouble paying for it. It’s a good idea to think carefully about what kind of health insurance is best for you and your family.