Life Insurance as well as General Insurance really are excellent integral part of our daily lives. Insurance is an exclusive financial product which can easily cover your financial risks. It is important for you to understand the features of general insurance along with features of life insurance as a mitigation plan for your financial objectives.
Just to give you an overview about what is Insurance, it is an agreement to secure against future losses. Usually insured gets a claim settlement amount from the insurer in-case of their financial losses. Many lives were ruined just because of sudden death of family member. Mostly due to reasons like: death, accident or disability of earning member, floods earthquake, fire, war and more. One of the good thing is that, we have cover for almost all types of risks ahead of time.
Features of Insurance
We can easily discover the types of insurance based on the characteristics of insurance. For instance: risk related to fire, property, theft, health, accident, travel, vehicles are categorized under general insurance. Whereas risk related to life for example: death, accident death, permanent disability, whole life or endowments are categorized as life insurance. Let us get into deeper to understand important features of insurance which benefits commonly across individuals, business or corporate entities.
Features of General Insurance
Here we are going to focus closely to understand important features of general insurance to get enough knowledge on it.
One of the common features of general insurance as well as features of life insurance is with respect to their affordability. Term insurance plans fall under the category of life insurance. These plans provide financial security against untimely death by requiring payment of a small premium amount each year. This type of insurance offers the advantages of financial protection to your family in case of unexpected events.
Similarly, vehicle insurance, property insurance or fire insurance protect your assets from any financial risk or losses before it occurs at very affordable fees called as premium. Assets created in your lifetime are precious, costly and good thing is that you can get cover for any losses by paying a very small fees.
Easy to Buy Any Kind of Insurance
One of the important features of insurance in today’s world is that, buying insurance is just like how you buy clothes, domestic items, footwear online within an effortless manner. There are 2 methods for buying any types of insurance. Firstly, offline means buying from insurance broker or representative.
Secondly online means buying directly from the insurance company with few clicks on their company’s website or their partner’s website. There are various online calculators to check benefits of insurance and make a purchase online. Mostly in all the cases, online plans are cheaper than offline / retail plans ranging from 5% to 30%.
Bodily Damage / Injury
Bodily injuries can happen at various points for example: while evacuating from fire at home, property structure broken and fallen on you or almost any vehicle accident. One of the great feature of general insurance is that appropriate coverage will reduce your financial burden by pay medical fees, discomfort, suffering to another party as well as loss of wages. Many of the general insurance policies also pay for legal fees where other party sue to get more financial compensation from you.
If you are responsible for any kind of damages to other with respect to property, vehicle, goods and services then, insurance coverage can easily help you to compensate for any expenses or financial losses.
The only important features of general insurance are that; it covers cost of repair to your as well as others assets involved in damages. Mostly it always covers legal fees within the case towards sue for additional damages.
One of the crucial features of general insurance which many of the people consider as optional and ignore it. You can add comprehensive coverage in your insurance policy because it pays for damages as well as repairs for your assets in the case of a fire, theft, falling objects, natural disaster and more.
Mostly general insurance provides basic coverage for your assets. Comprehensive coverage may increase your premium amount but at the same time it gives you wide and advance level of coverage for insurable assets.
Features of Life Insurance
Life insurance is very crucial insurance in everyone’s life. It assists family, dependents with unnecessary financial burden. Now days buying online, hassle free and fast processing are some of the significant features of insurance. Online plans are even cheaper as insurance company saves in the intermediary commissions and passes their discount to their customers. You should initially know principles of insurance before you look closely into some of the features of life insurance which you must know about it.
Flexible Premium Payable Options
One of the common features of general insurance as well as features of life insurance is flexibility in paying insurance premiums. Almost all the insurance companies offer flexible payment options to collect premiums on insurance policies.
You can choose to pay premium either annually, half-yearly, quarterly or even monthly. Flexibility helps policyholder to choose maximum coverage with wide range of premium payment options as per their budget.
Paid at Unforeseen Event of Life
Insurance pays when any contingency occurs. One of the best features of life insurance is that, it is a contract / agreement of certainty, which means insurance company always make a payment to nominee of policyholder. Life insurance is certainty because either death or policy maturity is going to occur at some point of time.
Whereas in other insurance contracts, contingency might occurs or may not as well. For example: In-case of property damage or fire insurance, unforeseen event sometime may occur and may not occur as well. In such case, insurance company pay you or nominee at the time of any unforeseen even is occurred.
Life Cover Feature
The nominee(s) of the policyholder gets financial security as a benefit in the event of the death of policyholder. This is one the greatest features of life insurance. Many times when the income earner pass away, it become difficult for dependents to fulfill financial needs of the family. There are best term insurances plans which provides huge coverage for a little premium. There are many policies where you can chose the highest of 99 years of life cover as well.
Critical Disease / Illness Benefits
This is one of the optional features of life insurance which you can choose to avail as well. In this insurance provides the advantage of payout on the diagnosis from the list of critical diseases / ailments. In such cases, you can claim the benefit amount even without medical bills.
Accidental Death Coverage
In almost all kind of life insurance policies you can additionally choose this rider along with your basic life insurance coverage. One of the features of life insurance riders are that, they pay-out additional amount based on the type of the rider chosen by the policyholder. For example: In this case, when policy holder dies due to accident then nominee gets either 1.5 times or even 2 times of the assured amount as decided while buying the policy.
Terminal illness Coverage
This is again an add-on rider which policyholder can either chose to opt or opt out from it. There are few life insurance policies where if you are identified with the terminal illness, then you can claim entire insured amount even before the death of the policyholder.
Premium Waiver at Disability
There are many great features of life insurance and this is one from them. There are many insurance policies where all future premiums are waived off which policyholder had to pay to the insurance company under few circumstances. For example, in-case of permanent disability or partial disability, you can claim for premium waive off. It is applicable only when you have selected this riders with basic life insurance coverage.
Here was have gained enough knowledge on features of general insurance as well as features of life insurance. I am sure this will assist you to understand the importance of insurance at various unforeseen events of your life. These features of insurance will guide you to take the right insurance decision and protect yourself from any further financial losses.
A further level of customization is made possible by the availability of riders and add-ons, ensuring that the policy is in line with specific requirements and goals. Benefits from general life insurance act as a dependable and flexible tool, promoting long-term stability and prosperity as individuals navigate life’s uncertainties.
In conclusion, features of general life insurance are crucial in giving people and families complete financial security and peace of mind. With its broad range of coverage options and flexible premium payment options, general life insurance offers a customized answer for various life phases and circumstances. The investing element of the policy, which enables policyholders to accumulate funds over time, raises the value of the contract even further.