Features of Life and Non-life Insurance15/03/2023 0 By indiafreenotes
Life insurance is a type of insurance that pays out a death benefit to the beneficiary of the policy if the insured person dies. In addition to providing a death benefit, many life insurance policies also offer investment or savings components.
Here are some of the key features of life insurance:
- Protection for the family: Life insurance is designed to protect the policyholder’s family financially in case of their untimely death.
- Long-term savings: Some life insurance policies also offer investment or savings components that can accumulate over time and provide a source of income in retirement.
- Premiums are based on risk factors: Life insurance premiums are typically based on factors such as the policyholder’s age, health status, and lifestyle.
Non-life insurance, also known as general insurance, provides protection against losses that arise from events such as accidents, fire, theft, or natural disasters.
Here are some of the key features of non-life insurance:
- Protection against financial losses: Non-life insurance is designed to protect policyholders from financial losses due to unexpected events such as accidents or natural disasters.
- Short-term protection: Non-life insurance policies typically provide coverage for a specific period, such as one year, and must be renewed periodically.
- Premiums are based on risk factors: Non-life insurance premiums are typically based on factors such as the level of risk associated with the policyholder’s property or business.