What are the two main types of insurance?

The correct answer identifies the two main categories of insurance as life insurance and non-life insurance. Life insurance refers to policies that provide financial protection against the loss of life, ensuring that beneficiaries receive benefits upon the policyholder's death. This type of insurance plays a critical role in financial planning, offering security for loved ones.

Non-life insurance encompasses a broad range of products that provide coverage for other risks, such as property, liability, health, and casualty insurance. This category is essential for protecting individuals and businesses from various unforeseen events that could lead to financial loss, including damages to property, legal claims, and overall liability exposures.

The distinction between life insurance and non-life insurance is fundamental to understanding how insurance functions as a safety net for both individuals and organizations. Each category addresses different needs and risk exposures, making them the backbone of the insurance industry.