Difference Between Life & Non-Life Insurance
Life insurance pays the beneficiary, usually the family, upon the death of the policyholder. Major non-life insurance categories include health insurance to pay medical expenses and automobile insurance, homeowner's or renter's insurance and insurance to cover professional and business liabilities.
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Life Insurance
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Life insurance is typically a long-term investment, often to provide for family members in the event of the death of a parent or other main source of support.
Health Insurance
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Health insurance differs from other forms of insurance in that it covers medical care and can include preventative care rather than damages.
Automobile Insurance
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To register a motor vehicle, motor vehicle owners usually must buy auto insurance at the very minimum to pay for damage or injury that may be caused by the automobile.
Homeowner's Insurance
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Other common forms of insurance protect property such as homeowner or renter's insurance paid in the in the event of damage to the property or its contents due to fire, flood or earthquake. Purchase of a home will require homeowner's insurance.
Types
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Some professions, such as health care, require malpractice insurance to protect against claims arising from professional practice.
Many localities prohibit businesses from opening to the public until the owner purchases business insurance.
Insurance policies can be purchased to protect almost anything from pets to weddings.
Famous Ties
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Lloyd's of London famously insured Betty Grable's legs for $650,000, Jimmy Durante's nose for $140,000 and flamenco dancer, Jose Greco's specially manufactured pants for $980 per pair in case of trouser-splitting during performances.
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