Health vs Life Insurance difference
We all want to live a worry-free life and for that investing go a long way. When it comes to planning for the future, it includes taking care of medical expenses and leaving behind a corpus for our beloved ones in the event of any unfortunate event. Post covid-19, a lot of spotlight has fallen on the insurance requirements of every citizen. Everyone must be prepared for eventuality and fortunately, there are a number of insurance solutions available to tackle them. Life Insurance and Health Insurance are the products that play a vital role in that regard.
Health Insurance
We’ve all seen during the period when Covid-19 devastated the world, so many people without the right health covers were unable to get quality treatment. Healthcare has gained prominence over the years and the need for Health Insurance is more important than ever. A Health Insurance is a contract between the Insurance Company and the policy buyer, where the company takes care of medical expenses to the policyholder, in exchange for an annual premium. There are multiple types of Health Insurance Products available in the market. You can avail coverage for yourself and your family along with a range of riders that you deem important.
Life Insurance
Life Insurance is an important product which can help your family financially in the event you are not around. Life Insurance is a contract between the Insurance provider and the insurer, where the insurer provides a sum assured to the policyholder’s nominee in the event of his/her death within the policy period. The death benefit paid to the nominee is tax-free. So, the sum assured reaches the family without any deductions. Given the unpredictability of life, it is important that everyone opts for a life insurance policy as it could save your family from financial doldrums when you are not around.
Both Health Insurance and Life Insurance go a long way in protecting you. That said, there are some differences between both these types of Insurances that you should know,
| Life Insurance | Health Insurance |
| It offers comprehensive cover all through your life span depending upon the type of cover you opt for. It provides the sum assured to the beneficiary upon the demise of the policyholder within the policy period | Health Insurance is limited just to cater to your health needs. It covers the medical expenses through cashless facility or reimbursement. It does not extend beyond providing medical cover |
| Life Insurance is a long time policy | Health Insurance is a short time policy. You have to renew it on a yearly basis. |
| Premiums are fixed and flexible depending upon the type of cover. Some plans also come with an investment option | The premium for health insurance is fixed. There is no investment component associated with it. |
| Life cover is for a fixed tenure. It is terminated after the tenure is over | With health insurance, there is no fixed tenure though premium is valid for one year. The policy buyer can keep renewing the policy as long as he/she need |
| Depending upon the plan you opt for, you can get survival and death benefits | There is no survival or death benefit in a Health Insurance |
| In Some cases, by paying a extra premium, the money you invested comes back to you upon maturity, if you outlive the policy period | There will be no refund upon non-usage in a health insurance. It can be availed only for treatment for illnesses |
Now that you know the difference between Health and Life Insurance policy, you can analyze your requirements and choose the best plans for both. We strongly advocate getting both the covers, as they have different sets of benefits and features, and both go a long way in securing your future. You can always visit Fincover.com to find the best life and health insurance plans any time. Fincover has aggregated an array of best plans from all the leading insurance companies for both these policies. You can pick the best one in a matter of few minutes just by inputting a few details. For any assistance, you can post your comment right below, our insurance agents would be glad to assist you.
