Difference Between Life Insurance and General Insurance:

There are several major differences between life insurance and general insurance policies offered by some of the insurance companies in India. For example, most life insurance policies come with long-term contracts, which means you must pay the premium for several years. However, in the case of general insurance policies, the policy must be renewed only every year. Also, life insurance policies can be claimed upon the death of the policyholder during the term or tenure of the policy or during its maturity. In the case of general insurance, reimbursements are done during some eventuality. Similarly, all life insurance policies come with a savings component not present in general insurance.

Points to consider when buying general insurance 

When you want to buy general insurance plans, here are some points which you should always keep in mind:

1. Choose a plan which you require. Health insurance plans are a must and if you have a vehicle you also need motor insurance. Travel insurance plans are relevant when you are going on a trip. So, understand your coverage requirements and then buy a plan
2. Ensure that the coverage level is optimal to cover your financial losses
3. The premiums of the plan should be affordable so that you don’t face a financial strain in paying for the policy
4. Always compare before buying. There are different policies available in the market and each policy offers something better than the other. When you compare you would be able to find the best general insurance policy which not only provides extensive coverage but also comes at a lower premium. So, don’t forget to compare. Turtlemint allows you a platform to compare the different types of general insurance policies available. You can check the plans for their coverage benefits and premiums and then buy.

Insurance can be widely segregated into three categories–life, health, and general. General insurance is insurance for valuables other than our life and health. General insurance covers the insured against damage, loss, and theft of your valuables. The premium and cover of general insurance depend upon the type and extent of insurance. A general insurance policy typically has a period of a few years. In India, general insurance policies are of the following types:

Motor insurance

Insurance for the damage or theft of your motor vehicle, two-wheeler, three-wheeler, or four-wheeler, is covered under this type of insurance. The damage caused to the vehicle can be caused by natural or man-made circumstances, the extent of which would change from policy to policy.
Under the Motors Vehicle Act, motor insurance is mandatory in India. New motor vehicles come with third-party insurance right from the showroom itself.

Home insurance

Home and household insurance protect your home and the items inside it. A home insurance policy would also cover natural and man-made circumstances. The contents that are covered under a home insurance policy would depend on the type of policy you buy.

Travel insurance

Another popular type of general insurance is travel insurance, which covers your trips abroad. Travel insurance can be taken to cover the loss or theft of your valuables as well as documents. Some travel insurance policies also cover flight delays and medical emergencies. Travel insurance can be taken for personal as well as business trips.

Other types of general insurance:

• Marine insurance
• Commercial insurance
• Rural insurance
• Crop insurance

Top advantages of general insurance plans

General insurance plans are beneficial because of the following reasons –

• The plans cover financial losses and compensate you for the losses that you suffer. As such, general insurance plans provide you financial security even in the case of contingencies
• In some cases, general insurance plans are mandatory by law. For instance, motor insurance plans are mandatory as per the Motor Vehicles Act, 1988. Similarly, if you are travelling to Schengen countries, you mandatorily need a valid overseas health insurance plan. When you buy such mandated plans, you fulfil the legal obligation and save yourself from violation offence
• General insurance plans help in protecting your savings in emergency situations. You can, therefore, use your savings to fulfil your financial goals