Difference between Life and Non-life insurance

What is the difference between Life and Non-life insurance?

It is very important to know the difference between Life and Non-Life insurance as one should know which field they want to get in and choose their career accordingly. First, we will talk about Life Insurance. Life insurance is an insurance cover that gives out a certain amount to the insured or their nominated beneficiaries upon a certain event such as death of the individual who is insured. For our convenience and better understanding it won’t be wrong to state that Life Insurance is related to a human life. It’s basically a long term investment and requires periodic payments, either monthly or quarterly or annually. The risks that are covered by Life Insurance include – premature death, income during retirement, illness. The main products for the same consists of – whole life, endowment, term, medical and health, life annuity plan.
Now, we move on to Non-Life Insurance which is covers things apart from the things covered in Life Insurance. It is basically an insurance policy to protect an individual against losses and damages other than those covered by Life insurance. The coverage period for most non-life insurance policies and plans is usually one year, whereby premiums are normally paid on a one time basis. The risks that are covered by non-life insurance is property loss (stolen car or burnt house), liability arising from damage caused by an individual to a third party, accidental death or injury. The main products of non-life insurance includes – motor insurance, fire/house owners/householders insurance, personal accident insurance, medical and health insurance and travel insurance.