The term ‘insurance’ refers to a certain contract taken place between a person and an agent. Through the insurance policy the person can safeguard individual people or objects against losses or damage. Now life insurance and health insurance are two types of policies that one can get which are life insurance and health insurance.
While choosing life insurance India, you think that the policy can take care of your entire life offering reimbursement after your death. However, in the life insurance, you cannot get coverage on hospital transportation or admission fees. Therefore, coverage of both of the policies differs on a large scale, you can imagine.
Why Do You Need Life Insurance?
Life insurance online is a basic necessity for people as in the event of your death, the maturity benefit is designed to cater to the nominee’s needs.
- Even if the breadwinner does not survive for a long period seeing him/her son/daughter get into college, the lump sum of life insurance settlement can act as an asset.
- Life insurance takes care of future contingencies taken place within the family. Through the funds, the family can retain regular lifestyle even when the life assured passes away.
- There is life insurance for seniors behaving as protection post-retirement life and one-stop solution for financial goals.
- Premiums up to Rs. 1.5 lakh for life insurance are included under Section 80C of Income Tax Act indicating that the tax exemptions and benefits are applied in this type of insurance plan.
Therefore, for enabling financial security for your family when you are not around, this insurance plan can show remarkable instance.
Now Why Do People Get Health Insurance?
One of the important reasons for undertaking insurance policies during the 21st century is the fact that the society is disease-ridden. In order to cope with the huge medical expense, the health insurance can safeguard you at the time of treatment providing expense for the entire medical bill.
- The health insurance is included under Section 80D where tax exemption is available up to Rs. 60,000.
- You can get free checkups with the health insurance only if there are at least 5 claim-free years.
- Attendants play a major role in your recovery and this type of insurance policy pays for such expense.
- Few of the health insurances provide free health checkups and the benefit can range up to Rs. 2,000.
However, the terms and conditions regarding the critical illness vary and it is important to let the policymaker know about the pre-existing diseases.
Difference Between Life Insurance and Health Insurance
Going by the definitions of health insurance and life insurance, you can understand that there are certain distinctions between them.
- The health insurance caters to medical expense that has taken place due to the policyholder or his/her family members. However, the life insurance investment concentrates on the monetary benefit provided only if the insured passes away or suffers from a life-long
- In the life insurance policy, the return amount is only claimed when the policy ends. For an example, if your policy spans for 30 years, you need to pay for the premium for 40 years. But for the health insurance, you can claim whenever any medical contingency incurs.
- There is no chance of recovering money from health insurance unlike the life insurance where the amount can be recovered at the time of maturity.
Do You Need Both Life Insurance and Health Insurance?
As you can see the life insurance and health insurance are two most vital insurance policies. Through the former your family can get financial assistance in your absence and the latter takes care of all the hospitalization expense.
In a nutshell, the life insurance companies think of the individual’s family’s well being after the policyholder’s demise and the health insurance take care of the policyholder’s complete health.
When to Purchase Life Insurance and Health Insurance?
As both of these policies are highly important, checking the health insurance and life insurance rates, it is best to get both of the policies at the earliest stage.
- During your 20s, it is ideal to go with the health plan that has small coverage as long as it is affordable. For women, a health policy with maternity benefit is important. In case of life insurance, the term insurance plan can be good due to the cheap premiums.
- When you are in your 30s, the family planning becomes significant and a family floater plan can be helpful. In addition to the context, the child term plan can be a great choice for your child’s future.
- At the time when you are in your 40s, the term insurance is highly important and may be required to be renewed. Adding an endowment plan can be a plus and with the family floater plan, you can opt for top-up health policy. You can go for a pension plan thinking about your retirement and check the critical illness plans.
- As you keep ageing with the course of time, the pension plan is necessary for the 50s. Keep the comprehensive health policy that can take care of medical contingency.
- In your 60s, it becomes difficult to purchase a policy as the financial income starts to go downhill. However, it is the most important stage for being secured with insurances. There is always provision for senior citizen health insurance and the health plan must be renewed within the grace period.
Before buying any policy, it is important to review different factors like how many dependents are going to be there or other liabilities. Paying heed to exclusions of both of the policies is equally important to check before the purchase. The term plans are a lot cheaper than a whole life plan and the life insured must check once whether the employer offers a life or health policy.
However, before you purchase the policy, you need to use the life insurance calculator for understanding the premium amount. There is no doubt that the life insurance quotes help you managing the financial budget keeping in mind the premium amount. Additionally, take care of the health insurance only if you want it to take care of your health.