What is Life, Medical and Non-Life Insurance : This is My Take on it.

• November 14, 2018
• LUTAKOME
• no comments

I look at insurance as a financial instrument which provides a safety net should an unforeseen event threaten the things which matter to a person

These can range from property, reputation, life and health

Non-Life Insurance

Perhaps the most diverse cluster of insurance, non-life insurance is also referred to as general or short-term insurance focuses on providing a financial fallback position to anyone who owns any valuable item that was purchased with money whether its income generating or not.
This can range from personal belongings, businesses as well as the societal impact on one’s reputation under the liability classes.
Non-life aims at providing finances for restoring what is damaged or lost to its prior state before the loss or damage.

Life Insurance

Life insurance is the primary cluster of insurance for everyone; it provides funds to cater for your financial obligations should you lose your life unexpectedly. Obligations can range from household support, loans obligations, child education, etc.
Contrary to non-life insurance, the benefit paid in life insurance is not in any way meant to value the deceased’s life but to restore to an extent the cash flow arising out of the deceased to those closest to one’s heart.
Life insurance benefits are bought per need and the level of cover are determined by the degree of obligations although in many cases there are budgetary constraints leading to many people buying less than what they need.

Health Insurance

Medical insurance is all about catering for medical bills arising out of an unforeseen occurrence which can threaten one’s life.
Modern day health insurance is flexible enough to cover foreseen events such as maternity, pre-existing conditions, and congenital conditions.