Difference between life insurance and general insurance
A contract that covers any risk save the danger of death is known as general insurance, also referred to as non-life insurance or property and casualty insurance. The purpose of insurance is to protect ourselves and our possessions, such as our home, automobile, and other assets, from hazards like fire, theft, flood, storm, accident, and earthquake. These are indemnity contracts, in which the insurer guarantees to compensate the insured for any losses. Therefore, the insurance company will compensate the insured for their loss regardless of the policy's coverage amount. Since they are typically one year in length, they must be renewed annually. General insurance comes in the following forms: There are three types of life insurance, discussed: • Whole life assurance: With whole life assurance, the policy's pay out only goes to the nominee or the insured's legitimate heir after the latter passes away. • Term life insurance: In this type of insurance, the policy amount...