Why it is Important to Buy a General Insurance Cover

While accidents, natural disasters, or other misfortunes cannot be predicted, your safety can surely be taken care of. These are situations where general insurance covers can come into effect. General insurance covers are touted as blanket financial protection from the risks and occurrences that may be caused due to natural calamities, diseases, medical emergencies, and accidents. No doubt, life insurance is still one of the topmost priorities for everyone, but general insurance is catching on as being the second-most category of preferred insurance covers.

What is General Insurance?

Also known as non-life insurance, these are policies that provide coverage for different situations, depending on the loss that is incurred due to an unforeseen condition. Unlike life insurance which are long term policies, general insurance is generally active for a year or so. Some of the most common general insurance covers are as follows –

  • Motor insurance
  • Health insurance
  • Travel insurance
  • Home insurance

Each of the general insurance covers comes with its own set of advantages and specifications, but the main aim is to provide you with protection against unpredicted natural calamities or misfortunes.

Special Features of General Insurance Coverage

  • General insurance covers are generally opted for a year, i.e. 365 days, or for a short-term structure. 
  • As opposed to life insurance policies, general insurance covers offer protection against unforeseen situations like accidents, theft, natural disasters, or other mishaps.
  • General insurance policies are not renewed automatically, which gives you the flexibility of choosing a different policy or premium according to your requirements.
  • The premium is paid in advance.
  • Some of the general insurance policies are terminated in case of a total loss.
  • Under certain Acts of the Parliament, general insurance like motor insurance and are compulsory.  
  • Some general insurance policies are subjected to deductions if specified on the policy document.

What All Can You Get Covered Under General Insurance Policies?

With general insurance policies, everything that has a financial value in your life and comes with the probability of being stolen, lost, or damaged due to unforeseen natural or unnatural situations can be covered. Adding to this, even properties – movable and immovable, vehicles, cash, household goods, and liability towards the third party can be covered under general insurance policies.

Importance of Buying General Insurance

To understand why it is important to have a general insurance cover, consider the following example –

You build your dream home and decorate the interiors with beautiful figurines, a large TV, and so on. One day, while you are out, a thief breaks into your house and steals all the valuable items from your house. This is when a general insurance policy like home insurance can come to your aid. It will reimburse the covered amount, with which you can replace the stolen items. However, whether the entire amount is reimbursed or only a partial amount depends on the terms and conditions of your insurance company.

A general insurance cover will protect you financially from such mishaps that occur unpredictably. While this is just an example of how home insurance can help you, even the other types of general insurance policies can play important roles in helping you out during such tragic times.

Steps to Pay for General Insurance and to Whom You Have to Pay

Before you pay for your insurance policy, you need to look around and search for the most suitable cover. First, you should identify your needs, what the insurance should cover, the amount of coverage you need, and so on. Then, you can begin searching online for the right kind of policy. You can visit an insurer’s website to go through their policies as well as the add-on covers that they offer. Once you have made your selection, you can provide all the required details and the payment can be made directly online. Instead of putting your faith in some middleman or third-party, it is always best to buy directly from the insurance company. Having proper general insurance in place to secure your valuable assets provides a hedge against major financial loss. You may not be able to prevent untoward incidents but creating a financial backup with general insurance can be the next best thing.

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