Insurance policies can come to your aid and deliver financial assistance when the need arises. Emergencies can occur at any time, whether medical or otherwise, which is the precise time when such insurance plans come into effect.

However, before you can learn more about insurance in general, you should be able to categorise them based on type.

Broadly, you can divide insurance policies into two types, namely life and general insurance. While life insurance policies indicate just one policy, general insurance can be divided further into subcategories.

For any policyholder, distinguishing between life and general insurance plans is integral.

Life insurance is a contract between the insurance policyholder and the insurer. The insurer agrees to payment of a sum on the death of the person insured or after a defined period in return for the premium paid during his old age by the policyholder. 

Life insurance companies help protect your loved ones' future by offering a death benefit in case of unexpected events. Such policies also offer maturity benefits upon completion of the term the scheme has been availed.

A general insurance policy is a contract between a policyholder and an insurer that protects valuable assets from unwanted perils like fire, theft, burglary, etc. The insurance plan is bought by individuals and businesses to protect them against sudden financial losses because of various unforeseen events agendas like ill health, accidents, damage, etc. 

With the help of financial recompense and assistance at times of disaster, general insurance reduces the impact of unforeseen events, ensuring peace of mind and stability to policyholders and businesses.

Here are five essential things to remember while choosing a general insurance company:

1. Policy Options: Look for a company that will provide you with a number of policies that best fit your requirements, be it health, home, travel, or vehicle insurance. The policy should cover most of the probable risks.
2. Claim Settlement Process: Observe how the company has worked so far regarding efficiency and transparency in settling its claims. Fast and hassle-free processing of claims is extremely important in times of emergency.
3. Customer Service: Choose an insurance company known for good service and reputation with which they can provide instant solutions to your queries through various communication channels. 
4. Financial Stability: Check the insurance company's financial strength to ensure they can stick to their commitments, even in challenging circumstances.
5. Premiums and Discounts: Compare premiums offered by different insurers to cover similar risks. Also, check for discounts that are applicable due to no-claim bonuses, bundle policies, etc.

Here are the five essential pointers that you must keep in mind while choosing a life insurance policy:

1. Policy Options: Look for a firm that provides term plans, whole life insurance, and investment-linked plans to help you achieve your financial goals and be able to provide for the needs of your family.
2. Settlement Ratio: Check how many claims the firm has settled in the past. The higher the ratio, the better the chances that the sum assured will be given without hassle to the nominees.
3. Riders: Check for any additional riders or benefits that your policies could extend, majorly in critical illness coverage and accidental death benefits, which will enhance one's coverage based on needs.
4. Premium Flexibility: Check if the insurance company provides flexible premium payment plans that suit your budget and future goals.
5. Customer Reviews and Reputation: Get an idea about customer satisfaction levels from the reviews and testimonials of the company's reputation. 

In a nutshell, choosing the top insurance companies in India depends on factors like reputation, products, customer service, and claim settlement. Whether you need life insurance for financial security or general insurance for property protection, making smart decisions is essential. 

By evaluating these key factors, individuals and businesses can select insurance providers that meet their needs and expectations effectively. People also need to check the features of an insurance policy instead of deciding based on the premium rate alone.