General insurance refers to a range of insurance products apart from life insurance. Common examples of general insurance plans include health insurance, motor insurance, home insurance, and travel insurance, among others. General insurance plans cover you against financial losses if something unforeseen happens. For instance, a health insurance plan will cover you against hospitalisation costs when you fall ill and get admitted for treatment. A home insurance plan will cover the construct and contents of your home in the event of an untoward incident such as a robbery or a fire.
Just like you would with a life insurance plan, you need to pay a regular premium to maintain the coverage you get from your general insurance policy. A typical general insurance policy – like health insurance – is given for a year. However, you can opt to buy multi-year policies which may ultimately help you save the amount of premium you pay.
What are the benefits of buying general insurance?
There are many benefits to gain by buying general insurance plans. Let’s take a look at a few –
· Protects your hard-earned savings
The biggest benefit of having general insurance is that you protect your hard earned savings from getting spent in an emergency. Imagine a situation in which you face an accident while on holiday abroad. You may not have enough finance to deal with the resulting expenses in a foreign country. A travel insurance plan can come in handy in such a situation and help shoulder the expenses.
· Prepares you to meet contingencies
With the backing of a general insurance plan, you can head out into the open knowing you have a backup plan if things go awry. For example, if you live in a flood-prone area, a comprehensive motor insurance plan will help cover you against such natural disasters.
· Gives peace of mind
Finally, general insurance plans give you peace of mind. You can live life carefree without having to worry about your finances every step of the way. A general insurance plan is like a friend who is there to protect your finances when things go wrong.
Tips when selecting an insurance provider
Here are a few tips to keep in mind when selecting a general insurance provider –
· Check customer reviews
Before buying a general insurance plan, you might want to read reviews left by other customers for the insurance provider. If there are too many negative comments, you may want to get your coverage elsewhere.
· Compare policies online
You can easily buy general insurance through an agent. However, they may sway you in favour of a particular insurer or policy over another. It is advisable to spend some time reading the fine print of insurance policies online on your own. This way, you can compare the coverage being given by different insurers and choose the best one.
· Look at the claim settlement ratio
Finally, choose an insurer with a good claim settlement ratio. The claim settlement ratio shows you the percentage of claims settled over the total number of claims received.
We hope that this article has helped you understand general insurance today. All the best!