Here are some of the differences between Life Insurance and Health Insurance
Do you believe in planning for the future?
What is Life Insurance?
Life insurance is like your personal safety that your family can open once you are not around to fulfill their needs.
It is a bond between the person getting insured and the insurance company that in the unfortunate event of the insured’s demise, the life insurance he/she paid premiums for, bears fruit in terms of financial benefits to the beneficiary/nominee.
The death benefits in most cases are income tax-free. So, the sum assured reaches the family without any substantial deductions. Life insurance offers an insurance cover for your entire life. You can think of it as your future full-proof savings plan for your family.
There are two main categories of life insurance:
Whole life insurance often comes with fixed premium payouts and provides a sum assured to the beneficiary generally tax-free and is fixed.
This insurance is less costly than
Life insurance given its consistency and low or no risk approach. In some cases, one can choose to take a loan too against this kind of policy.
Life insurance also provides the nominee with a death benefit, but this can also be regarded as an investment policy. The premium payouts are generally flexible, and a part of the payment is invested to add more cash value to the sum assured. Unlike Whole Life Insurance or Term insurance, this type of insurance is expensive, given the nature of investing for higher returns that in turn can sometimes result in potential risks. Keeping this in mind the premiums for such plans are flexible offering flexible death benefits.
What is Health Insurance?
Health insurance is a contract between the insured and the insurance company to provide you with financial cover in times of medical needs. The Insured pays a fixed premium for his/her health cover.
If you have health insurance, you can either get the medical expenses that went through your pocket reimbursed or the insurance company pays the medical expenses directly on your behalf, both depending upon the health insurance policy that’s chosen. Certain health plans also cover the cost of your prescription medicines.
There are three main categories of Health insurance:
Individual Health Insurance – An individual health insurance is a type of policy customized for a single person, to safeguard and cover oneself from various illnesses, accidents, hospitalization expenses and, other medical emergencies that may arise in one’s lifetime. Additionally, individual health insurance plans also provide for additional benefits like Maternity benefits, OPD expenses, Critical Illnesses, 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. The same protects and covers all family members against various illnesses, accidents, hospitalization, and other medical needs that may arise during one’s lifetime.
Senior Citizens Health Insurance – As the name suggests, senior citizens’ health insurance is a type of health insurance policy designed for people above the age of 60. The same is customized keeping in mind the different physical and psychological needs of senior citizens and offers benefits such as Domiciliary Care, Organ Donations expenses, and Critical Illnesses among others.
cool, thx for the info
cool
cool staff, thanx for the info