The difference between the general and life insurance

Insurance, this term is quite friendly we hear in everyday life. The progress of the age that accompanied the progress in education made some people aware of the importance of insurance for their lives. The average insurance benefit emphasizes the security or protection of clients against the risks that could adversely affect finances. Meanwhile, you can also visit Best-lifeinsurance.com.au if you’re looking for the recommended insurance services.

No doubt, insurance companies are innovating in marketing their newest products. Some clients sometimes complain that insurance products do not match what they expect. The incident is not entirely the fault of the insurance company. Could be the client itself does not understand the company’s insurance products.

There are two insurance products that are commonly offered. What are they? Here’s an explanation.

It is important for you to know more details about the insurance products offered. Below will be explained about life insurance and general insurance along with its advantages and disadvantages.

1. Life Insurance

This one insurance product focuses on the protection of clients or customers. If at any time the client dies (due to an accident or health problem), the family will receive a certain amount of fee which corresponds to the dependent scheme at the beginning of the agreement.

Life insurance is grouped into three, namely:

a) Life Insurance (Whole Life)

This life insurance provides protection until the age of the client reaches 99 years. The excellence of this insurance is in the nominal cash continues to grow even after the premium payment period has ended or expired.

b) Term Insurance (Term Life)

The only insurance that does not have a cash nominal and has an annual deadline. In short, premium money cannot be taken if the period is up. In addition, term insurance is the only one that has no savings feature compared to the other three types of life insurance.

Nevertheless, term insurance has advantages, namely:

Affordable Premiums
Due to the nature of the premium that can be forfeited, the insurance price is very affordable.

Nominal Coverage Paid Large Enough
Nominally paid insurance is almost similar to other types of insurance.

Protection Period Free and Can Be Customized
The protection deadlines can be tailored to the needs of the client. Starting from 1-70 years. Which should be remembered when determining deadlines, consider the preferred risk protection when your age begins to enter the productive period of work.

c) Endowment

Insurance that provides benefits in the form of cash payments within the stipulated period according to the agreed agreement. For example, education insurance and pension insurance.

2. General Insurance

Actually, general insurance is not too different from life insurance. It’s just that the protected object is wider, not just limited to death only. In addition, in terms of insurance payments to clients, charged in the form of money and there is also in the form of compensation.

In general insurance, you are not only limited to life protection, but non-life property or property can also be insured, such as vehicles, buildings, and others. Based on the object, general insurance is divided into two:

a) Air and Sea Insurance

Provides coverage for the risk of accidents occurring on land and at sea.

b) Non-Air and Marine Insurance

Includes property insurance, personal accident insurance, health insurance, fire insurance, vehicle insurance, construction or building insurance, residential insurance, disaster insurance, and so on.

Richard T. Starkey

Author: Richard T. Starkey

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