Difference Between Health Insurance And Life Insurance
If you believe in planning and securing your future, then getting yourself insured by buying a life and health insurance policy should be your next step. A lot of people get confused between life insurance and health insurance at the time of purchasing a suitable policy for themselves as both of these policies have their own set of advantages. So, the following question arises- Which insurance policy is ideal for you? Let’s read and find out more about each of them
Knowing More About Health Insurance And Life insurance
In order to make an informed decision, it is significant to know what health insurance and life insurance actually is. Health insurance acts as a financial support system to assist you at the time of your deteriorating health issues to bear the cost of medical bills. The coverage includes medicinal costs, hospitalization charges, medical tests, surgeries, and other treatment expenses.
On the other hand, life insurance acts as a safety net to support your family financially in your absence. With such policies, in the event of your untimely death, the nominee is given the sum assured to support themselves. The sum of money handed over by your insurance company can be used to meet their everyday expenses as well as expenses arising in the future such as education or marriage of a child.
Life Insurance V/S Health Insurance
Given below is a table stating points of distinction between Life insurance and health insurance. Read on to know more:
|
Basis |
Life Insurance |
Health Insurance |
|
Coverage |
It is a comprehensive cover, which offers you complete insurance coverage for a lifetime. |
It provides coverage for the cost of medical and other hospitalization expenses. It is limited only to your medical expenses. |
|
Premium |
The premium can be either flexible or fixed depending upon the life insurance plan you select. Some of the plans in life insurance also come with investment value policies for the future. |
Here, the premium is generally fixed. It offers coverage to deal with expenses that are incurred at the time of medical emergencies. The primary motive of these policies is protection and not investment. |
|
Type of plan |
It is a long term plan and is valid for a fixed tenure. Once the tenure gets over, the plan gets terminated. The plans offered include term plans, child-related, retirement, etc. |
It is a short term plan and the tenure is not fixed. The plans offered include comprehensive health insurance policies, critical illness cover, etc. |
|
Core Benefit |
The nominee of the policyholder is paid the sum assured(Death Benefit) |
As per the maximum coverage amount mentioned in the plan, the treatment expenses for illness and other medical costs are covered. |
|
Additional Benefits Offered |
Other than the death benefit, you can add various other benefits like surrender, maturity, loyalty addition etc in addition to the basic cover. |
In case of a few plans, no claim bonus can be included. Also, some of the insurance providers offer free health check up facilities. |
|
Tax Benefits |
Under section 10(10D) and section 80C of the income tax act. |
Under section 80 D of the income tax act. |
|
Financial Protection |
Life insurance plans offer financial protection to the beneficiary/nominee/family in the event of the insured’s death. |
Health insurance offers a financial safety cover for an individual as well as its family. |
Benefits of Insurance Plans
Here are the benefits of insurance plans:
Health Insurance
Health insurance plans offer the following benefits:
- Covers medical expenses for critical illness if opted for as a part of a plan or an additional benefit.
- Covers pre-hospitalisation and post-hospitalisation expenses.
- Covers accidental hospitalization costs such as ambulance cost, ICU, physician fees, diagnostics, medication, etc.
- Covers expenses related to maternity cost if opted as a part of the plan.
Life Insurance
Life insurance plans offer the following benefits:
- The most important benefit of a life insurance plan is that it offers financial protection and security during the time of need.
- Generally offers tax-free payouts
- Death Benefit
- As per the prevalent tax laws, life insurance plans offer tax benefits and exemptions.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
