General Insurance-Meaning and Types

General insurance is one of the practical modes for a person to invest in risk-free options. There are financial instruments which pose certain level of risk. Risk refers to the potentiality of a certain event being uncertain or unpleasant. Hence, it is important that one secures all the things he/she owns.

General insurance is one of the practical modes for a person to invest in risk-free options. There are financial instruments which pose certain level of risk. Risk refers to the potentiality of a certain event being uncertain or unpleasant. Hence, it is important that one secures all the things he/she owns.

General Insurance- Explained

Insurance policies are further categorized in two buckets, life insurance & general insurance.

General insurance covers costs related to the insured and her possessions. The common types of general insurance are explained in detail below.

Car insurance

The law makes it imperative for all the car owners to have car insurance prior to owning the car. Otherwise, the person will not be able to drive his/her car. Driving without a legal car insurance is termed as illegal and therefore will put you in trouble in the form of penalty.

It’s like a long-term insurance covering the various damage costs which might occur due to unforeseen events or accidents. It’s something which helps sustain your vehicle’s luster without giving a huge blow to your pockets!

In simple terms, it’s a cover which compensates for the damage costs which might happen to your vehicle due to any kind of accidents or events like fire or natural disasters.

Health insurance

It covers various health issues and related medical costs. The details about whether the policy covers existing illnesses and what diseases it will cover and how much sum assured value, is listed in the policy documents. Hence, read the policy documents carefully before investing. Carefully examine that all your requirements are covered and confirm the same personally with the concerned insurance company personnel.

Housing insurance

Get introduced to another common general insurance type which is home. Most of the people rely on these policies which enable them to buy their dream homes. This becomes possible due to easy premium schemes to be paid in installments unlike lump sum amounts.

Importance of getting general insurance:

To insure anything other than just human life is known as general insurance. This provides compensation when valuables are damaged. There can be various such instances like damage to property due to fire, damage or loss due to theft, etc.

A crucial reason to get insured is to keep our valuable assets safe against any financial losses in future. Damage to valuables can cause huge stress. However, when they’re covered by a valid general insurance company then all your worries are reduced to great extent! And when it takes immense sweat & lot of time to earn your valuables, don’t you thing protecting becomes crucial?

Buy general insurance and get protected against third-party liabilities:

With comprehensive general insurance, you’re insured against third-party liabilities as well! When one causes loss to another person, she is entitled to compensation which can be very high. However, when you have proper policy this liability gets shifted to the insurance company.

Inference:

After getting general insurance, one can easily live his/her life freely and without any worries of losing valuable assets like car. Also it releases you from overwhelming pressure of future of family and business.

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