Life Insurance vs Health Insurance
Do you believe in planning for the future? If yes, purchasing Life and Health Insurance policies should be your next move. Want to understand everything about these policies? Read and sharpen your knowledge with us
Life insurance is like your personal safety that your family can open once you are not around to fulfill their needs. It is a bond between the person getting insured and the insurance company that in the unfortunate event of the insured’s demise, the life insurance he/she paid premiums for, bears fruit in terms of financial benefits to the beneficiary/nominee. The death benefits in most cases are income tax-free. So, the sum assured reaches the family without any substantial deductions. Life insurance offers an insurance cover for your entire life. You can think of it as your future full-proof savings plan for your family.
There are two main categories of life insurance:
Health insurance is a contract between the insured and the insurance company to provide you with a financial cover in times of medical needs. The Insured pays a fixed premium for his/her health cover. If you have health insurance, you can either get the medical expenses that went through your pocket reimbursed or the insurance company pays the medical expenses directly on your behalf, both depending upon the health insurance policy that’s chosen. Certain health plans also cover the cost of your prescription medicines.
There are three main categories of Health insurance:
Difference between Life Insurance and Health Insurance
Life insurance is a comprehensive cover that offers you complete Insurance all through your life span, it is not limited to a certain expense. It actually is the coverage in the eventuality of the insured’s demise, when the sum assured goes to the beneficiary.
Health insurance is usually limited to only catering to your medical/surgical/ hospital needs, providing just a medical emergency cover as and when required. It does not go beyond your medical expense care.
The premiums are both fixed and flexible depending upon the type of Life insurance picked. Some Life Insurance plans also come with future investment value policies for better cash value.
The premiums are mostly fixed. Health insurance provides coverage to deal with expenses incurred during medical emergencies. Investment is not the motive of these plans, protection is. One can claim a No-claim bonus in some cases.
Life insurance is a long-term plan.
Health insurance is a short-term plan.
Life insurance is generally for a fixed tenure. It normally is terminated once the tenure of the Insurance is over.
The tenure of this kind of insurance is not fixed. Under normal circumstance, the insured renews the policy annually so he/she can continue to have the protection coverage it offers.
Life insurance is mainly protecting your family/beneficiary/nominee financially in the eventuality of the insured’s demise.
Health insurance is the protection cover for self as well as the family, in order to avoid any unfortunate eventuality such as loss of life due to financial constraints.
Life insurance, depending upon the insurance you choose offers both Survival and Death benefits at the end of the insurance term.
Health insurance comes with no Survival or Death benefit, it only caters to your current medical needs and treatment.
In some cases, by paying a little extra premium, the money you invest comes back to you tax-free, upon maturity, in case you outlive the policy term.
No amount is refunded at the end of the policy term. The amount comes back only as reimbursement that too against the expenses you incurred during the term for your illness or any other medical expenditure.
Benefits of Life Insurance Plans
Benefits of our Health Insurance Plans
The main purpose of health insurance is to receive the best medical care without any stress on your finances. Health insurance plans offer protection against unexpected medical emergencies. The premium paid at one go allows tax benefits for the number of years of insurance cover and this is just one benefit you get from having a health insurance policy. We provide several other benefits and add-ons to help customers deal with all uncertain situations of life.
Life and Health Insurance is for everyone who is worried about the future, for family and for the ones who care. Health insurance gets your medical affairs covered and Life insurance gets your family covered in your absence.
life is uncertain, it is better to protect yourself and your loved ones before it’s too late. Both these insurance policies are crucial for each one of us. What you pick is now your personal choice.