All too often we hear about various types of insurance policies without really understanding what they are and more importantly, what they protect. The truth is, there are two main types of insurance, namely life insurance and general insurance which covers different aspects in your life.
General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.
There are two categories of general insurance products, one which falls under the Commercial Lines offered to businesses/corporations and the second one is offered under Personal Lines, designed specifically for the public.
The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.
The risks that are covered by general insurance are:
- Property loss, for example, stolen car, or burnt house
- Liability arising from damage caused by yourself to a third party
- Accidental death or injury
The main products of general insurance includes: