General
insurance is an insurance other than life insurance which includes automobile
and homeowner policies. It provides payment to the insured based on the loss
due to a particular financial event. It is also called as property and casualty
insurance or Non-Life insurance. Basically, general insurance protects us and
the things we value from financial impact of risks.
The few main
products of general insurance includes:
i) Motor
insurance
Motor insurance
generally cover your vehicle such as motorcycle or car or even a lorry from any
cases such as accidents or thefts. There are three main types of motor
insurance which we can choose from which are third party cover, fire and theft
cover and comprehensive cover. All three coverage cover in different area and
thus it depends how much you can claim if your vehicles sustain different level
or type of damage.
ii) Home
insurance
Home insurance
is one of the most important insurance that you should definitely buy in your
life. Home being the largest asset is the most important financial investment
to be protected and secured in your life. In order to protect your house, there
are three types of home insurance available to be bought: basic fire policy,
house owners policy and house holder policy. House owners policy provides more
coverage than basic fire policy which only cover against lost or damage caused
by fire, lightning or explosion. Meanwhile house holder policy contains
coverage on your household content and also fatal to you as the insured.
iii) Personal
accident insurance
Personal
accident insurance is an policy which is normally annually that provides
compensation on those events of injuries, disability or death caused solely
by violent, accident and external and
visible events. Personal accident insurance is a 24-hour worldwide policy which
means that you are secured 24 hours no matter where you are. Therefore this is
a suitable for a whole family to secure their future. The types of coverage
which are normally provided under personal accident insurance are accidental
death, permanent disablement, temporary total or partial disablement, medical
expenses, corrective surgery, hospitalisation benefits and funeral benefits.
iv) Medical
& health insurance
Medical &
health insurance are policy made specifically to cover the cost of private
medical treatment such as hospitalisation and surgery which may be highly cost.
This policy is important where you don't have to worry about the medical
expenses when there is emergency. Moreover, when you are undergoing treatment,
you also may receive an income stream.
v) Travel
insurance
Travel insurance
is the insurance bought when an insured are travelling. There are different
type of policies for long term or short term traveler. There are lots of
accident or travel related losses which may happen during travelling such as
personal accident, losing your passports, hijacking, delayed baggage, losing
your baggage, belongings or money and travel delays. All of the above may be
covered under a travel insurance.
Difference
between Life insurance and General insurance
Life insurance
generally transfer the financial risk associated to your death to the insurer.
You pay premiums to the insurer so that the insurer will pay you a death
benefit promise in return. Meanwhile, general insurance transfer the financial
risk away from you and your family to the insurer for personal matters other
than life insurance. General insurance do like life insurance require the
payment of premiums. However, general insurance is normally indemnity policies.
With general insurance, such as property and casualty or health insurance, the
amount of money is limited to the risks specifically named in the policy and to
the damage actually incurred. Health insurers, for example only pay for the
medical costs you incurred, instead of a lump sum of money unrelated to your
medical bills.
Advantages
of general insurance
-The expenses of
medical treatment which may not be delayed could be secured by compensating from the policies of health
and medical insurance.
-Sometimes those
cost dealing with pets maybe handy. Pet lovers could get pet insurance policies
to secure their pets' benefits.
-Accident
insurance policies enable us to arrange those huge amount in least possible
time in order to solve the urgency.
-Secure your new
vehicles from accidents or thefts by purchasing motor vehicle insurance.
-There are also
unemployment insurance which may insure your new gotten job.
-Having a travel
insurance plan also secure you a safe and happy vacations.
Most important,
we need to get an insurance which best suites our life style. At every step of
life we need to have a insurance plan to safeguard us from calamities taking
place. This uncertainties may cause a lot of trouble to our life. Therefore,
general insurance is there to secured not just ourselves and also our
properties.
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