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Should Buy a Health Insurance with Life Insurance

The term ‘insurance’ refers to a certain contract that takes 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.

When choosing life insurance in India, you think that the policy can take care of your entire life offering reimbursement after your death. However, in life insurance, you cannot get coverage on hospital transportation or admission fees. Therefore, coverage of both of the policies differs on a large scale, as 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 his/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 a regular lifestyle even when the life assured passes away.
  • There is life insurance for seniors behaving as protection post-retirement life and a one-stop solution for financial goals.
  • Premiums up to Rs. 1.5 lakh for life insurance are included under Section 80C of the 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 instances.

Now Why Do People Get Health Insurance?

One of the important reasons for undertaking insurance policies during the 21st century is the fact that society is disease-ridden. To cope with huge medical expenses, health insurance can safeguard you at the time of treatment providing expenses 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 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 critical illness vary and it is important to let the policymaker know about the pre-existing diseases. The same goes for seniors in the US who are looking to get themselves a dental plan, which is another popular form of insurance taken out by many of America’s older citizens. It’s very important to talk with your dental insurance provider about pre-existing conditions since those can impact the cost of the plan.

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. There are also many different types of health insurance, for example, group health insurance in Florida covers employees of a company or members of an organization.

  • The health insurance caters to medical expenses that have 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 example, if your policy spans 30 years, you need to pay for the premium for 40 years. But for the health insurance, you can claim whenever any medical contingency occurs.
  • There is no chance of recovering money from health insurance, unlike 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 life insurance and health insurance are the 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 expenses.

In a nutshell, life insurance companies think of the individual’s family’s well-being after the policyholder’s demise and the health insurance takes care of the policyholder’s complete health.

Also Read: Best Life Insurance Companies In India

When to Purchase Life Insurance and Health Insurance?

As both of these policies are highly important, checking the health insurance and life insurance rates, is best to get both of the policies at the earliest stage. Before buying any insurance policy, it is important to review different factors like how many dependents are going to be there or other liabilities.

  • During your 20s, it is ideal to go with a health plan that has small coverage as long as it is affordable. For women, a health policy with maternity benefits is important. In the case of life insurance, the term insurance plan can be good due to the low 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 a top-up health policy. You can go for a pension plan think about your retirement and check the critical illness plans.
  • As you keep aging with time, a pension plan is necessary for the 50s. Keep a 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 insurance. There is always provision for senior citizen health insurance and the health plan must be renewed within the grace period.

Also read: Individual Health Insurance vs Family Floater Plan


However, before you purchase the policy, you need to use the life insurance calculator to understand the premium amount. There is no doubt that life insurance quotes help you manage 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.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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