Difference: Health Insurance V/S Life Insurance
Updated On May 01, 2021
Table of Contents
Life insurance and health insurance are important in the life of an individual as it protects them and their family members from unexpected medical expenses. Both these types of insurance policies serve different purposes and render different coverage. Life insurance benefits the family members with the death benefit of the insured and helps them to replace the income loss of the breadwinner. Health insurance on the other hand pays for medical expenses at times of health emergencies.
Comparison Between Health Insurance and Life Insurance
People genuinely require both these types of insurance as it offers them inherent protection at different life stages. Young working professionals are required to obtain both life insurance and health insurance coverage. The major difference between the two types of insurance is that health insurance covers medical expenses and doctor fees, whereas life insurance pays a death benefit in a lump.
|
Basis |
Life Insurance |
Health Insurance |
|
Basic Feature |
Life insurance renders comprehensive cover throughout the lifespan of the insured and is not limited to any expense. |
Health insurance caters only to the medical, surgical, and hospital expenses at times of health emergencies. |
|
Benefits |
|
|
|
Premiums |
The premiums are fixed and depend on the type of life insurance. |
The premiums are fixed, but a no-claim bonus can be acclaimed to achieve discounts on the premiums. |
|
Tenure |
Life insurance plans have a fixed tenure and the plans will get terminated after the insurance tenure is over. |
The tenure is not fixed. The insurer has to renew the policy annually as long as they want to enjoy the protection coverage. |
|
Beneficiaries |
Life insurance offers protection for the beneficiary or nominee financially, in the event of the demise of the insured. |
This is a medical protection cover for self and family to deal with health care expenses. |
|
Survival Benefit |
Depending on the type of health insurance plan chosen, it can offer both death and survival benefits at the end of the policy term.; |
There is no such survival or death benefit with health insurance. It will only cater to the medical cost of the insured and family members. |
Bottom Line
Both the life insurance and health insurance policies help people to be prepared for all life shortcomings and offer extensive coverage for themselves and family members against unwanted financial insecurities. Both of them offer coverage for self and loved ones before comprehensively. But having two policies can escalate the cost of premiums, and in such instances, it is beneficial to lower the sum assured.
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.
