What do you think when you heard "insurance" word? Many people maybe remember the health and life insurance. Actually, the insurance isn't talk about health and life only, but more than it.
Generally, there are two kinds of insurance : The General Insurance and Life Insurance. Life insurance is more popular because every people needs insurance backup for health problem and every human in the world always have risk for sick.
So, what is the difference between the two?
The General Insurance
General Insurance is an insurance type that covers any financial loss that caused on non-living things, e.g. : car insurance, fire insurance, loss insurance, etc. General insurance usually have a short term contract only.
The example is, if you are buying a travel insurance. The insurance policy is only valid if you are on and still during travelling that included in a condition the inside of the policy contract on the limited term. So, if you bought a travelling insurance from Indonesia to Singapore on 26th October - 30th October 2018 and you go by a plane, the policy is only valid with that condition and cannot be replaced.
But, there are a popular product of General Insurance : car policy and some lost insurance type. Usually, these kind of insurance is bundled with installment contract if you bought a car or motorcyle with installment payment method. These insurance may covers financial lost from lossing the item or damage.
Extra note, the general insurance haven't any cash value and any insurance premium that you've paid to the company cannot be returned, even you haven't claim anything within the contract term.
Examples of general insurance company : Generali General Insurance, Simas Mobil, OTO Insurance
Life Insurance
Life insurance is an insurance that covers customer and its family from financial loss that caused on living things, especially human. Because every human will definitely sick and died, so the life insurance company opens their business everywhere in the whole world.
Everybody should have any life insurance. It is because of no one knows when they will got sick or something terrible that can killed them. But, this isn't means that if you bought any life insurance policy then you can't die or sick.
As i have told in the beginning of this article, the life insurance only covers customers and its family from financial loss. This means, if something terrible is come to the customers, the financial loss will covered and the family might not fall into chaos or bankruptcy.
Life insurance is have 2 type, the conventional and unit link. The differences is only on its cash value. The unit link is combined from insurance and investment. So, you can withdraw your premium from the account, as long as you are not overdraft the balance.
Life insurance is have a very long term of contract (it could until 100 years), because people needs the insurance on their lifetime.
The examples of life insurance company operated in Indonesia : Tokio Marine Life, Prudential Life, Sinarmas Life, Cigna Life, AIA Life. Note : the "Life" word means the company only handle life insurance.
As the end of this article, you can't bought general insurance policy at life incurance agency and vice versa. It is because every agent must pass the insurance test that held by government, before they can sell the insurance policy. And every insurance agents are operated on the specific office and cannot combined.
EmoticonEmoticon