List of Insurance Companies in India

Life insurance policies cover the insured individual’s life against a substantial sum of funds for a fixed tenure. If the insured dies during this period, his/her family members are liable to receive this coverage amount from the life insurer as death benefit. However, death benefit clauses are not present in general insurance plans. 

You should think of life insurance plans as a form of investment. You pay a sum of money as premium throughout the policy tenure.

If the insured outlives this tenure, insurance companies offer a substantial return, based on the amount of premiums you serviced for the policy. Nevertheless, after expiry, the insured’s family member cannot claim death benefit.

In case of general insurance plans, the claim amount is determined by the extent of damage or the amount of loss suffered by the policyholder.

For instance, in case of a car insurance claim, the insurer will check the extent of damage and assess the cost of initiating repairs. Based on this assessment, the insurance company offers monetary compensation.

However, in the case of life insurance policies, the payout or claim amount remains the same irrespective of other factors.

Life insurance plans are long-term contracts, which can range up to 30-40 years in some cases. Therefore, middle-aged individuals opting for such policies can look to secure financial backing for family members in the event of their demise.

General insurance policies have a shorter term, generally between one year and three years. Policyholders can choose to renew coverage before their existing protection lapses.

Failure to renew these plans will lead to suspension of all policy benefits after the end of a particular tenure.