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What are the key differences between Life and General Insurance?
Life insurance and general insurance are two different forms of insurances. General insurance covers any other risk except for life-risk of the person injured. Life Insurance covers only the life-risk of the person insured.
In a table below, we have covered all the key points between Life Insurance and general Insurance:
Key Points | Life Insurance | General Insurance. |
Meaning | It is an insurance contract, which covers the life-risk of the person insured. | It is an insurance that is not covered under Life insurance. |
Form | It is a form of investment. | It is a contract of indemnity. |
Term of Contract. | It's a long term contract. | It's a short term contract. |
Premium | Premium has to be paid over the year. | Premium has to be paid lump sum. |
Insurance claim | Insurable amount is paid either on the occurrence of the event, or on maturity. | Loss is reimbursed, or liability will be repaid on the occurrence of uncertain event. |
Insurable Interest. | Must be present at the time of contract. | Must be present, at the time of contract and loss both. |
Policy Value. | It can be done for any value based on the premium policy. | The amount payable under life insurance is confined to the actual loss suffered. |
In conclusion, Life insurance has a component of savings and General insurance has no such component. Life insurance is an insurance against life- risk only and General Insurance is insurance against motor, fire etc.
HDFC LIFE offers various plans under LI and GI both for you to choose from as per your need and risk appetite.
FAQs on What are the key differences between Life and General Insurance? the risks such as burglary, fire, legal liabilities, personal accident, etc., including the financial loss associated with assets like home, car, etc. Health insurance, travel insurance, home insurance, commercial insurance, and motor insurance are some of the types of general insurance.
Sources:
https://irdai.gov.in/web/guest/non-life2
https://irdai.gov.in/en/web/guest/life3
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ARN- ED/05/24/11810
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Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance solutions - protection, pension, savings, investment, annuity and health.
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