What is General Insurance

what is general insurance

Types of Insurance:

What is General Insurance? Risk is everywhere whether you drive a car or you move to a foreign country. However, Bottom line is that you need the security of insurance.

Following are the two types of Insurance:

  • Life Insurance
  • General Insurance

Life Insurance:

It is a contract that offers financial compensation in case of causality. Some life insurance policies even offer financial compensation after retirement or a certain period of time. It helps you secure your family financially even when you are absent. You have to pay a handsome amount in order to purchase a life insurance policy. This type of Insurance policy is known as Premiums.  Read More about : Car donation 

General Insurance:

What is General Insurance? It works by spreading the cost of unexpected risks. These risks are among a large number of people in the same region. These risks are similar to each person.

It is typically defined as any insurance that has no connection with life insurance. It only works for Assets or Property. There are different types of general insurance some of them are: fire, marine, motor, accident, and other non-life insurance.

When you purchase an insurance policy. You pay a monthly or Annual Premium. That amount that you invest for premium, goes straight into a big pool of funds.

However, you will never need to draw that pool. But in case you are an unlucky person one may affect by an unexpected calamity. Maybe through severe weather or accident. Your amount present in the Pool can help you up to the limit you have selected in your policy.

In case something went wrong, Your Insurer or Insurance Company may either replace the item for you or pay the amount of the loss or damage. It usually depends on the term and conditions of your policy. You have the right to receive the amount settlement agreed in your policy from your Insurer.

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Work Without Any Worry:

Insurance Company in Pakistan. There are some cases in which families caught up in events that are not in their control, losing their homes or their cars, and getting caught in accidents or disasters at home or abroad.

Suppose you are in the above situation it is natural that you wonder what you will do. The question comes to mind that will he be able to recover financially without insurance.

Yes, it’s true that the risk of happening these things might be small. But you never know when it did happen to you. This can cause a Hugh impact on your finances, your lifestyle, or your future.

Insurance means that when you lose or damage that is precious in your life. You are not able to pay the full cost on your own. This impacts your financial crisis.

Whether you’re a born worrier or an unflagging optimist, a plan-every-detail person or someone who is happy to go with the flow, purchasing an insurance policy (which you hopefully never have to use) buys you something priceless – peace of mind.

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