Life insurance and General insurance. What is the difference?

Recently I’ve updated my LinkedIn profile and caused some misunderstandings. To some, or probably many who received notifications on it, took it as I jumped ship from the agency force of PACS (Prudential Assurance Company Singapore) to Tokio Marine Insurance Group.

No.

I am still with PACS. TM is for extending my portfolio so I can bring about better services and solution for my clients. Former deals with life insurance and investment, while the latter deals with general insurance, which previously, I don’t have direct access to the latter so I had to outsource. However, the day came where a few of my clients told me vividly that they want me as their sole agent for their policy matters and they don’t wish to see any other names except for mine on their policies and mailers. I bear not to disappoint them, as they are not just my clients but also dear friends.

Just what is the difference between life insurance and general insurance? The world has thousands of musical styles, but most of us only acknowledge two: There’s the kind we like and everything else. The insurance industry is radically different from the music industry, but a similar simplification can be applied. In the world of insurance, there is life insurance and everything else. “Everything else,” in this case, is called general insurance.

Life Insurance

The life insurance business has enough policies, plans and options to confuse anyone poring through them, but life insurance itself is a simple concept. If the policy is in force when you die, the insurer gives a specified amount of money to your chosen beneficiary. Helping clients understand what their needs are, suggesting and tweaking appropriate policies to meet those needs and instilling good financial-planning habits are all part of a life insurance agent’s work. This requires a considerable degree of expertise, and life insurance agents must qualify for relevant licenses before they can do business.

General Insurance

General insurance is a catchall phrase to describe almost any insurance other than life coverage. It includes property-oriented coverage such as automobile, homeowner and travel policies, as well as health and group benefits plans. The malpractice insurance carried by health professionals and the errors and omissions insurance that plays the same role for other professionals are both forms of general insurance. General insurance agents and brokers are also licensed and need multiple licenses or certifications depending on the lines of insurance they sell.

Comprehensive Coverage

For the individual consumer, acquiring all your insurance through a single agent has its advantages. One definite benefit is simplicity. Coordinating all your coverage through one agent makes it quick and easy to manage claims and renewals. When appropriate, combining multiple policies with one insurer can result in discounts. A good agent can also help you fit the coverage you need into your overall financial plan.

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