Difference Between Life Insurance And General Insurance
The main dissimilarities or differences between life insurance and general insurance can be pointed out as follows:
1. introduction
Life Insurance: A contract in which the insurer (insurance company) agrees to cover the life risk of the insured (insurance policy holder).
General Insurance: A contract in which the insurer agrees to cover the risk of assets and properties (which are not covered by life insurance policy).
2. Protection
Life Insurance: Protection against human life
General Insurance: Protection against loss to properties or assets
3. Nature
Life Insurance: It is a kind of long term investment
General Insurance: Contract of indemnity
4. Period
Life insurance: Longer period (5 to 25 years)
General Insurance: Shorter Period (generally one year)
5. Principle Of Subrogation
Life Insurance: Not applicable
General Insurance: Applicable
6. Surrender Value
Life Insurance: Yes, it can be surrendered and company provides surrendered value
General Insurance: There will be no surrender value
7. Certainty
Life Insurance: Certain
General Insurance: Uncertain
8. Mode Of Payment
Life Insurance: Premium can be paid quarterly, half-yearly or yearly
General Insurance : Lump sum
Also Read:
Also Read:
Difference Between Insurance And Assurance
9. Premium Calculation
Life Insurance: Premium amount of life insurance policy is determined on the basis of the type of the policy, age and health of the policy holder and duration of the policy.
General Insurance: Premium amount is determined on the basis of risk of the assets
9. Premium Calculation
Life Insurance: Premium amount of life insurance policy is determined on the basis of the type of the policy, age and health of the policy holder and duration of the policy.
General Insurance: Premium amount is determined on the basis of risk of the assets
10. Form/Types
Life Insurance: Endowment policy, whole life policy, money back policy, child policy etc.
General Insurance: Health insurance, fire insurance, motor insurance, marine insurance etc.
Life Insurance Vs General Insurance (Comparison Chart)
I hope this post is helpful to understand the difference between life insurance and general or non life insurance and to make comparison between them.
Life Insurance Vs General Insurance (Comparison Chart)
Basis For Difference
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Life Insurance
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General Insurance
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Introduction
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A legal contract that covers the life risk of the insured person
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A legal contract that covers the risk of assets and properties
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Protection
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Human life
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Properties or assets
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It Is
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Investment
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Contract of indemnity
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Period
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Longer
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Shorter
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Principle Of Subrogation
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Applied
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Not applied
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Surrender Value
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Yes
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No
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Certainty
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Yes
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No
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Payment Mode
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Monthly, quarterly, half yearly or annually
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Lump sum
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Basis Of Premium
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Age and health of the policy holder
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Risk and value of the asset
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Forms
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Endowment policy, child policy, money back policy etc.
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Health insurance, fire insurance, marine insurance etc.
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I hope this post is helpful to understand the difference between life insurance and general or non life insurance and to make comparison between them.
