There are a number of reasons for why people go after insurance policies. While some feel it will aid them during the tax declarations, others are comfortable with saving their money using insurance policies. Then there are others who use insurance as a form of investment. For a person new to insurance, all this means that insurance is a very flexible entity and you can use it to your advantage.
Apart from the above reasons, an insurance policy at its core offers you protection for a certain entity in return of the premiums that you pay. It is quite obvious that a single insurance type cannot offer you all of the above. This is where various categories and types of insurances come into the picture. One such important category is the general insurance.
A general insurance, as the name partially suggests takes care of all the non-life insurance policies. There is no denying the fact that human life is the biggest asset that a person possesses. However, during the lifetime, individuals buy several other items and entities that have a considerable value in themselves. A general insurance offers cover for such items.
It is advisable to have one life insurance policy and a combination of general insurance policies to ensure complete peace of mind for an individual. The following are some policies that come under the banner of general insurance.
- Motor Insurance
- Health Insurance
- Commercial Insurance
- Home Insurance
- Travel Insurance
- Rural Insurance
- Marine Insurance
While most of the above policies are self-explanatory, commercial insurance is another category in itself. It comprises of policies such as liability insurance, energy insurance, property insurance, engineering insurance, etc. Now that you are aware of the various categories, you can use them to your advantage.
Learn About General Insurance
There are a lot of valuables that we keep adding to our portfolio with time. Some of them require significant financial investments. As is the case generally, nothing comes risk free. If you were to dodge the financial risks arising out of such investments or other entities, a general insurance is your smartest bet.
Assets usually are open to risks such as fire, flood, earthquake, accidents, theft and so on. Should you choose the right policy and the right cover, you need not worry about such risks. In simple terms, a life insurance policy caters to death related risks whereas a general insurance looks after other assets in life. They also do differ in terms of their tenure. While life insurance policies usually have a longer term, general insurance policies usually have yearly contracts. Though in the recent times, some insurers have started offering multi-year general insurance policies, they last only about two to three years at the maximum.
Why Should You Know About General Insurance
Knowing about the different types of general insurance on offer will help you decide which policy best suits your needs and requirements. Out of the various policies under the umbrella of general insurance, two stand out. Health insurance and motor insurance.
A health insurance policy offers cover and protection against medical procedures. If you are not already aware, medical inflation is amongst one of the highest inflation rates in the country. This translates into higher medical expenses on a regular basis. For an instance, if a procedure that cost you about INR 25,000 about a couple of years will be much more expensive now.
One can surely try to save money to cater to medical emergencies. However, given the rising costs, hospitalization for a few days will largely eat into your savings. And should there be a requirement of additional procedures, you might not be able to afford the same. Buying a health insurance policy ensures that you and your family members get the best treatment possible without ever worrying about the expenses and comparing the same on Coverfox will help you get the best deal as well.
India is home to one of the largest growing automobile industry. This means that there are a lot more vehicles on the road, thereby increasing the risk of accidents and other nuances such as theft and burglary. When you have a good motor insurance, you need not worry about such instances. In fact, a motor insurance offers you cover against own damage, natural calamities, theft, vandalism, burglary etc. Some of them also offer personal accident cover for the rider/driver making it an even more attractive option. Most importantly, driving without an insurance will fetch you a hefty fine and potentially a lot of risks.
Depending on your needs, you can opt for any one of the general insurance policies and safeguard your assets.