After disembarking from a flight, we all have the universal experience of waiting with bated breath to collect our luggage. After all, we’ve heard plenty of horror stories about lost or stolen belongings. There’s always this fear at the back of our minds — what if my luggage never arrives? Will I get compensated for my losses?
Apart from life and health insurance, general insurance is taken to protect yourself and the things you value. It doesn’t just cover your luggage, but also your property, car and more. With general insurance, your insurer will pay you in the form of an assured sum or agreed amount to cover losses under certain circumstances.
Life and health insurance are must-haves, and they cover you for many mortality and critical illness scenarios. However, life or health insurance does not cover all the things we value, namely non-life assets. These are not just trivial things, as losing them could be severely detrimental. If you lost your home to an accidental fire, for example, not getting any insurance payout would certainly make rebuilding your life much harder.
Travel is another type of general insurance to protect yourself against the uncertainties of going abroad. Knowing that you’re covered in the event of sudden trip cancellation, injury, loss of personal belongings or personal liability gives you peace of mind. Which is great news for any R&R vacation.
In summary, general insurance covers fire, burglary, theft, accident, motor vehicles, travel and more. Unlike life insurance, which is a long-term contract with monthly premiums, general insurance policies are usually short-term contracts renewed yearly.
General insurance policies are also mostly contracts of indemnity - meaning that while it covers any relevant losses, there are no savings and investments aspects. In other words, if there are no claims made during the tenure of the policy, none of the premiums paid are given back to you.
Remember that only insurance agents or the staff of insurance brokers can sell general insurance. Some forms of general insurance, such as travel insurance, can be purchased directly online.
Whether it’s for yourself, your home, your pet or your car, general insurance can play a vital role in covering unforeseen circumstances and protecting the things you value... and sometimes love, too!
WHAT IS GENERAL INSURANCE? COMPLETED. ✅
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