What is General Insurance?
Insurance policies can be divided into two categories: general insurance, and life insurance. The former, as you may have guessed, includes policies that cover all aspects of a person's life and belongings. Car, medical, accident, travel – insurance for all these things is covered under General insurance.
What are the benefits of General Insurance?
The aim of any insurance policy is twofold: repay you financially for any loss, and to give you peace of mind in case of a loss. For instance, the cost of any medical treatment can be prohibitively high. If you have a medical insurance policy, the company providing you with the policy has a liability to reimburse you partly for the cost of the treatment. This can often be more than 80% of the entire cost – a huge saving.
In some instances, insurance is mandatory. For example, you can not drive a car in the US without owning an auto insurance policy.
What are the Common Types of General Insurance?
The most common type would be auto insurance, especially in the United States, where, as stated above, it is a necessity.
Health insurance is also very common across much of the developed world. In the United States, there is a big debate about extending it to all sections of the society – a practice that is prevalent across the Western world. This kind of insurance is especially beneficial as the cost of healthcare in developed countries is usually very high.
Home insurance is also very common and most homeowners have some sort of policy to cover their house in case of any damage. When you consider that the average cost of a house can run into several hundred thousand dollars, it becomes something necessary to protect it against any kind of loss. Home insurance provides the perfect antidote, giving homeowners peace of mind, as well as financial reimbursements in case of any damage covered under the policy.