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The Orgin of FastInsurnace is TREFCON INSURANCE SERVICES PVT LTD ( IRDAI License No- CA0784 ) FastInsurance, is an insurance portal, where any one can buy insurance directly from this portal. We Have backed by a team of insurance professionals having more then 10 years of experience in insurance industry. We have setup the online platform “ FastInsurance “ where an individual can fulfil their insurance requirements directly from this website.

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Life Insurance and General Insurance

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Difference Between Life Insurance and General Insurance?

Insurance is a contract that is designed to protect the interest of policyholders or beneficiaries in the face of the various uncertainties of life. There are two broad categories of insurance contracts in India– life insurance and general insurance. Unfortunately, there is some confusion regarding the differences between life insurance vs. general insurance in India.
In the following sections we will discuss the key differences between life insurance and general insurance along with the key features of these common types of insurance in India.

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What is Life Insurance?

A life insurance policy is a life cover to put it simply. It is a contract that bounds the insurance provider to offer financial compensation to the beneficiary in case of the unfortunate events covered under the policy, like the insured’s untimely demise. In exchange, the policyholder pays a predetermined amount as regular premiums or single premium.

The life insurance policy covers a certain period, and if the policyholder survives it, they are eligible for a maturity benefit, as per the terms of the contract. People opt for life insurance policies to provide financial protection in case of unprecedented circumstances.

What are the types of life insurance?

  • Term Insurance:-Term life plans are the most basic life insurance plans offering financial protection to the beneficiary, in case the life insured does not survive the covered period. It is often preferred as it provides comprehensive coverage at an affordable premium.Term Insurance with Return of Premium (TROP) is another type of term plan that offers maturity benefits along with death benefit. It requires a slightly more expensive premium. It is helpful to understand your specific financial requirements to calculate a suitable premium amount.
  • Whole Life Insurance :-Whole Life Insurance plans provide cover to the insured for their entire life, or as long as the premiums are paid. It is an ideal choice for people who require extensive life coverage and want their family to be financially protected at all times.
  • Endowment Plan:-Endowment plans are a combination of investment and insurance. A portion of the premium goes towards securing the sum assured, and the rest is utilized for investment purposes. It serves the purpose of amassing savings at lower risks and providing financial protection to loved ones during the policy term. Upon maturity, the insured will receive the sum assured.
  • Unit Linked Insurance Plans (ULIPs):-ULIPs allow the policyholder to invest in mutual funds and ensure life cover at the same time. It is ideal for long-term financial goals as they help in wealth creation. Depending on one’s risk appetite portfolio, one can invest into various fund options i.e. equity (high risk), debt (low risk), or hybrid funds (medium risk). Along with the death benefit, ULIPs offer partial withdrawal after the lock-in period of five years is over and also allows switching between funds.
  • Savings and Income Plans :-As life insurance products, these plans can help you instill the habit of disciplined savings to ensure steady returns in the form of monthly income or a lumpsum amount. Alongside, these life insurance plans provide various other benefits, including death benefits, tax benefits, terminal illness benefits, to name a few. Check the life insurance quotes and details before making investment decisions, so you can allocate your money in the right places
  • Group Insurance Plans :-These life insurance plans are meant for organizations or groups to provide life cover to the employees or group members, respectively. Through group insurance plans, the employers tend to take care of the financial security of their employees’ family, thus motivating them to work harder to maintain high-performing businesses. Keeping this cover in mind, you can check the life insurance quotes for additional financial security for your loved ones.

What is General Insurance?

General Insurance is any policy that covers assets and valuables such as a vehicle, home, travel, and health against damage, loss or theft, and many other liabilities. The critical difference between life insurance and general insurance is that the latter offers financial protection against damage or loss other than life.

What are the types of General Insurance?

  • Health Insurance :-Health Insurance offers coverage for medical and surgical expenses for the insured. It acts as a safeguard against medical emergencies. Depending on the terms of a health plan, the insurance provider either settles the bill directly with the hospital or reimburses the insured for their expenses
  • Motor Insurance :-Motor Insurance provides financial protection for personal and commercial automobiles against loss due to damage, theft, accident, fire, natural calamities, etc. Two significant types of motor insurance policies are:

    Comprehensive Insurance – This covers both the parties involved in an accident. Additionally, it offers protection against the scenarios mentioned earlier as well.
    Third-Party Insurance – This provides coverage for the third-party involved in an accident. According to the Motor Vehicles Act, all two-wheelers and four-wheelers must have third-party insurance.
  • Travel Insurance:-If you travel frequently, it is beneficial to invest in a travel insurance policy. It offers security against loss of baggage, delay or cancellation of flights, accidents, or hospitalization expenses, during a trip
  • Home Insurance:-A house is a valuable asset in a person’s life. Home insurance provides financial security against damages due to natural or human-made disasters that can damage the house or its belongings.
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