In Insurance there are basically two types of insurance which any company can offer to a person, they can be classified as follows –
1. Life Insurance – It refers to the insurance of life of the person buying the policy and covers the risks which are related to the death of the person, hence in case of death of the person who has bought the life insurance policy insurance company will pay the amount of insurance to the family of that person.
2. General Insurance – It refers to all those kinds of contracts other than life insurance. There is however further classification of general insurance based on the risk against which the general insurance is taken. So for example against the risk of fire there can be fire insurance, or against the risk of water there is marine insurance which is taken by ships, or against earthquake, theft, even health insurance comes under the category of general insurance and not life insurance etc….. So there can be insurance against any risk provided it is predictable and quantifiable