Monday, March 5, 2012

Insurance- Insurance -types


Insurance is divided into two types.

1.Long-term Life Insurance
2.General Insurance (Non-Life Insurance) 


Long term insurance is so called because it is meant for a long-term period which may stretch to several years or whole life-time of the insured. Long-term insurance covers all life insurance policies. Insurance against risk to one's life is covered under ordinary life assurance. 

Ordinary life assurance can be further classified into following types:
  1. Whole Life Assurance  
  2. Endowment Assurance
  3. Assurances for Children
  4. Term Assurance
  5. Annuities
  6. Money Back Policy

General Insurance     
General insurance is normally meant for a short-term period of twelve months or less. Recently, longer-term insurance agreements have made an entry into the business of general insurance but their term does not exceed five years.  
General insurance can be classified as follows:

  1. Fire Insurance
  2. Marine Insurance
  3. Miscellaneous  


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