Individuals who are planning to get an insurance cover must be aware of simple terms and should have some knowledge before buying any insurance product.
As there are various types of insurance in the market, one can get easily confused. Now, let us understand the basic difference between life and health insurance.
The main objective of buying a life insurance is it covers your life. Means in case of the death of policy holder, his family will receive the amount insured on his life.
This is also called as term life insurance. Usually, the benefit from the policy is passed on to the nominee.
In the absence of the policy holder, his family can maintain their lifestyle and need not worry about financial commitments. In case of survival of the account holder during that policy period, will not have any survival benefits. However, one can avail additional optional benefits such as critical illness and accidental death, disability.
Health insurance mainly concentrates on the cost incurred when you are hospitalised or cost towards treating illnesses or medical conditions.
Such policies usually do not cover death benefit. An individual who is not covered with health policy may experience financial restriction at the time of critical illness.
So, it is better to be covered by a policy which will take care of your hospital expenses. There are many types of health policies available, one have to choose based on many factors such as how much coverage is required and network hospital and about the cashless facility.
The premium of the policy will depend on a various factor such as coverage of the policy, age and the younger you are the cheaper will be the premium.
A life insurance and health insurance is a must for a financially responsible individual.