Difference between Life Insurance and General Insurance
Life Insurance | General Insurance | |
---|---|---|
1. | This type of insurance covers the life-risk of the person insured. | This type of insurance does not cover the insurances which are not covered under life insurance. |
2. | It is a form of investment. | It is only a contract of indemnity. |
3. | It is a long-term investment. | It is a short-term investment. |
4. | Its premium should be paid over the year. | Its premium should be paid all at once rather than in installments. |
5. | Insurable interest must be present at the time of the contract. | Insurable interest must be present at the time of contract and loss both. |
6. | The amount of the insurance done is either given on maturity or the happening of an event. | Loss is refundable and liability will be repaid on the happening of an uncertain incident or an event. |
Difference between Life Insurance and General Insurance
Insurance is termed as a contract where an individual or an organization applies for financial protection from an insurance company and is represented in the form of a policy. This topic comes under the category of “Economics”. Kindly bookmark this topic for future use.