Health and life insurance are two different kinds of protection, both of which are necessary to protect your family, finances and the future. They are not alternatives but complementary to each other.
Health insurance is not a luxury but a necessity for everyone. It helps pay for medical expenses and manage your health, which enables you to stay at peace and avoid losing personal funds or savings for medical treatment when faced with health issues. It's important to note that health insurers don't cover everything—they only cover what's known as "preventable" costs of illness or injury, so they're not huge compared to other types of insurance coverage such as life insurance or disability income plans. Health insurance protects both individuals and families from unexpected healthcare expenses.
The three main categories of health insurance policies are -
Individual Health Insurance
This policy is curated for a single person and safeguards and covers him/her from various illnesses, accidents, hospitalization expenses and other medical emergencies that may arise in their lifetime. It also provides additional benefits like Maternity Benefits, OPD expenses, Critical Illnesses Cover, AYUSH, etc.
Family Floater Health Insurance
A family floater health insurance is a type of policy customized to suit the entire family under one single premium.
Senior Citizens Health Insurance
This policy is designed for people above the age of 60 and is curated keeping in mind the different physical and psychological needs of senior citizens. It also offers benefits such as Domiciliary Care, AYUSH, Organ Donations expenses, and Critical Illnesses.
Life insurance is investing in a valuable financial safety net for your family. Through it, a lump sum amount of money will be paid to whoever is designated as nominee or beneficiaries (usually spouse or children) post the policyholder’s (the life insured) death. It helps replenish to some extent the economic value of the deceased family member and can pay for residual debt and other daily living expenses that would otherwise be left unpaid. It allows families to cope with the loss of income-earning members or those with economic value in present or future for the family’s well-being. Even for those with a good amount of savings or wealth, it is an added advantage to take a life cover through life insurance plans to provide additional security to one’s dependents and loved ones. So don't let fear keep you from taking advantage of life insurance - it could save your loved ones from financial hardship in your absence! Life insurance is a good investment you can get at any age, whatever your current health status. It's easy to find coverage that fits your budget and lifestyle: there are no special requirements. In case of health conditions or pre-existing risks, the insurer may rate up the premium due to higher risk, but coverage can still be provided even in most such cases.
There are two main categories of life insurance policies -
Whole life insurance - This policy often comes with fixed premium payouts and provides a sum assured to the beneficiary that is generally tax-free and fixed. It is less costly due to its consistency and low/no-risk approach. In some cases, one can even take a loan against this kind of policy.
Universal life insurance over and above general benefits provides the nominee with a death benefit which can also be regarded as an investment policy. The premium payouts are usually flexible, and a part of the payment is invested in adding more cash value to the sum assured. It is more expensive due to the nature of investing for higher returns which can often be risky.
Some insurance plans are also market linked or what is called Unit linked plans. In such plans, policyholders can opt for their insurance premium to be invested in market-linked securities, thereby securing a chance to obtain a higher return on the monies locked into the plan. In other plans, one only gets an assured endowment or payout. Each plan in life insurance could be different, and one must take time to understand the pros and cons of each before choosing one.
The level of life insurance coverage one seeks is also linked to income. This is because the objective here is to replenish this lost income in case one dies before creating a sufficient corpus for the family.
Health insurance and life insurance are two very different things. However, they both serve important purposes in your life.
Health insurance is something everyone needs to have because it protects you from the possibility of catastrophic illness or injury that could leave you unable to work or take care of yourself. Life insurance can help protect your family's finances if you become disabled or ill while still earning a living wage. Both policies also allow each couple member (or family) to get coverage without having to pay for more than one policy at once—which means less paperwork when applying for them!
Therefore, health and life insurance are two financial products that can help you with medical bills, and other expenses. Both these insurances are essential to help protect your and your family's health, finances and future. It would be best if you had them both because they complement each other. They are not alternatives but rather two important types of coverage that can protect you from financial loss in the event of an accident or illness, or death respectively. For instance, life insurance can help pay off debts or save for your children's education if you pass away before providing a corpus for these events. Health insurance, on the other hand, can be used as a backup to pay for health costs without eating into one’s savings set aside for other long-term goals.
So, take control, get insured and ensure you're getting what's best for YOU! The best way to do this is by having health and life insurance.
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