Insurance Explained

Life is unpredictable and that is what makes it exciting. However, some unexpected events can really set you back.

Insurance can help protect the things we value the most. Understanding insurance is an important place to start from so that you are able to determine what will work for you.

There are generally two types of insurance; Life insurance and non-life or general insurance.

What is life insurance?

Life insurance is a long-term contract between an individual (policy holder) or organisation and an insurance company.
In the event of death of the insured, life insurance ensures that their loved ones continue to enjoy quality life. There are other events in life that may trigger payment from the life insurance cover including critical illness, terminal illness, temporary or permanent disability; this is dependent on the terms of the contract. Other expenses such as funeral expenses may also be covered.

What is general insurance?

General insurance, also referred to as Non-Life insurance, is typically defined as any insurance not determined to be life insurance.
General insurance covers are annual and can be broadly categorized into two; Personal (for individuals) and commercial (for commercial entities).
General Insurance covers big and small risks including; fire, floods and storms, theft, car accidents, medical costs, travel mishaps, breakdown of machinery and even legal action against you.