The Definition of Insurance

Most people usually will first consider to Life Insurance before thinking of General Insurance

There are two different types of insurance - life insurance reserves and general insurance. Usually life insurance does not need to renew the policy each year. Instead, the user agrees to pay a fixed premium for a certain number of years. In other words, we enter into a long-term, when you buy a life insurance policy.




General insurance pays out:
• If a car has an accident or was stolen;
• if a house catches fire or robbed;
• if a holiday should be declared null and void;
• If someone is negligent and the damage to property belonging to others.

Most life policies, on the other hand pay when an event occurs,
• when someone dies,
• when someone survive after a certain date.

Anyone can buy life insurance, but of course the premium depends on your age, your health and your profession.

Men and wives can insure each other's lives. However, it is not possible to see life on other if you do not have a financial participation in their lives. This principle of insurance is called "insurable interest"

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What is Insurance in general?