Life Insurance |
General Insurance |
Provides coverage for death or terminal illness |
Provides coverage for a wide range of events such as property damage, liability, personal accident, and health |
Purpose of life insurance is to provide financial protection for an individual's beneficiaries in the event of their death |
Purpose of general insurance is to protect against financial losses due to a range of events. |
Typically have a longer term, often lasting until the death of the policyholder |
Usually have a shorter term, often renewing annually |
Premiums are typically higher than general insurance premiums (Death is a more certain) |
Premiums are typically lower than life insurance premiums |
Claims process for life insurance is typically straightforward, involving payment of a lump sum in the event of the policyholder's death or terminal illness |
Claims process for general insurance can be more complex, involving assessments of the extent of damage or loss |
Some life insurance policies have an investment component, allowing policyholders to grow their savings while also providing death coverage |
General insurance policies do not have an investment component |
Difference between life insurance and general insurance
Current Affairs
powered by Surfing Waves