Which of the following is correct?
A. Life insurance is a long term contract
B. General insurance is a short term contract

Both the statements are correct.
Life insurance is a long term contract and General insurance is a short term contract. Traditional life insurance contracts include whole life, term life, annuities in payout status, long-term care and disability income. General insurance is a contract that covers any risk other than the risk of life. These contracts are of short term in nature - generally one year - and therefore, the policy renewal is required every year.