Difference Between Life Insurance and General Insurance
Though both serve as safety nets, life insurance and general insurance are fundamentally different.
Comparison Table:
| Feature | Life Insurance | General Insurance |
|---|---|---|
| Purpose | Covers life risk (death, survival, etc.) | Covers risks related to health, vehicle etc |
| Term | Long-term (10-30+ years) | Short-term (usually 1 year, renewable) |
| Benefit | Sum assured paid to nominee or insured | Reimbursement or coverage of actual loss |
| Claims | Paid only once (usually on death or maturity) | Can be claimed multiple times (as per policy) |
| Examples | Term plan, endowment, ULIP | Car insurance, health and travel insurance |
In short, life insurance is for long-term life protection, while general insurance helps manage day-to-day risks.