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What are the key differences between Life and General Insurance?

Difference between life and General insurance
November 14, 2023

Life insurance and general insurance are two different forms of insurances.  General insurance covers any other risk except for life-risk of the person injured. Life Insurance covers only the life-risk of the person insured.

In a table below, we have covered all the key points between Life Insurance and general Insurance:

Key Points

Life Insurance

General Insurance.


It is an insurance contract, which covers the life-risk of the person insured.

It is an insurance that is not covered under Life insurance.


It is a form of investment.

It is a contract of indemnity.

Term of Contract.

It's a long term contract.

It's a short term contract.


Premium has to be paid over the year.

Premium has to be paid lump sum.

Insurance claim

Insurable amount is paid either on the occurrence of the event, or on maturity.

Loss is reimbursed, or liability will be repaid on the occurrence of uncertain event.

Insurable Interest.

Must be present at the time of contract.

Must be present, at the time of contract and loss both.

Policy Value.

It can be done for any value based on the premium policy.

The amount payable under life insurance is confined to the actual loss suffered.

In conclusion, Life insurance has a component of savings and General insurance has no such component. Life insurance is an insurance against life- risk only and General Insurance is insurance against motor, fire etc.

HDFC LIFE offers various plans under LI and GI both for you to choose from as per your need and risk appetite.

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