what is general insurance

What Is General Insurance And Why Is It Important For You

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Life is highly unpredictable – certain unfortunate and unforeseen events in your life can cause a heavy setback such as incurring a heavy loss due to an automobile accident or suffering from a health condition that has highly expensive treatment and medications. This is exactly why you need general insurance.

What is general insurance?

A general insurance policy assists individuals financially in case they incur damage to their insured property. Similar to how life insurance works – providing the beneficiary with financial insurance on the death of the policyholder – general insurance protects you financially when you suffer a setback that is listed in their coverage. 

Why are general insurance covers important for you?

General insurance covers are just as important as life insurance policies owing to the multiple risks associated with natural calamities, emergencies, and unforeseen events. While we may not be able to handle misfortunes, we can prepare ourselves to deal with them in a better way. Given below are some of the reasons that summarize the importance of general insurance covers:

1. To protect your assets

Your home is likely to be one of the biggest assets you possess as individuals spend years preparing to build or buy their dream home. Having all of that taken away from you in an instant due to something that wasn’t even your fault – such as a natural calamity or fire – could leave you broken and helpless. General insurance covers help you protect the assets you spent years in building and hence is of utmost importance.

2. To prepare for the unexpected

General insurance covers give you the peace of mind that you truly deserve and nothing can translate into a better good night’s sleep than knowing that you are sorted in case a financial emergency presents itself in front of you. General insurance covers give you the benefit of being prepared for different emergencies and give you the privilege of not letting anything catch you by surprise. 

What are the types of general insurance?

As the name suggests, general insurance covers “general” aspects of an individual’s life, and essentially includes all non-life insurance policies as described by integon national insurance and given below:

1. Health insurance

Health insurance policies cover the costs associated with treating medical treatments and emergencies. This coverage includes the cost of treatment, medication, hospitalization, and consultation. In recent years, insurance policies have grown to cater to specific health conditions such as policies designed especially for cancer patients, etc. 

There are essentially two types of health insurance plans – all other types are extensions of these two – which include a medical claim plan and a critical illness plan. The former refers to when the cost of hospitalization, consultation, and medication are covered up to a certain limit depending upon the policy.

The latter pertains to insurance for life-threatening diseases and the payout made entirely depends on the policy purchased rather than on the expenses being incurred. 

2. Automobile insurance

An automobile insurance policy covers all liabilities and expenses you may incur in case of an automobile accident from your vehicle. It provides coverage for almost all situations and aspects of a car accident whether it be or not your fault. It covers any injuries you incur, any damage to your or someone else’s vehicle, and in case your car gets stolen. In many countries, it is mandatory to have automobile insurance for your vehicle.

The three main types of automobile insurance are namely third-party liability insurance which only covers when your car damages a third party and their vehicle, and comprehensive motor insurance which covers damages that you, your vehicle, a third party, or their vehicle incurs.

3. Travel insurance

Travel insurance is essentially a policy that covers financial risks that you may incur during your travels. Irrespective of whether your travels are leisurely, for business or academic, you would be covered under a travel insurance plan.

If you are visiting a country for academic or business trips, it is likely that your funding or inviting body already requires you to purchase travel insurance and makes it mandatory for you to do so. 

4. Home insurance

A home insurance policy protects you from any sort of financial losses you may incur due to damage caused to your home. While earlier home insurance policies were covered only for structural and exterior damage, newer home insurance providers have begun to include other features such as covering your home’s interior and for any assets, your house may contain that get damaged due to natural circumstances, man-made disasters, or theft. 

5. Commercial insurance

Commercial insurance policies cover any ongoing risks that your business or commercial operations may be facing. These include property insurance, general commercial liability, fire insurance, and worker’s compensation insurance amongst others. In many states, businesses must obtain commercial insurance.

While the world of general insurance may seem too overwhelming for your understanding, know that navigating through its currents would be beneficial for you, your family, and your business in the long run.