Few things are as important financial life, as life Insurance and health insurance. Life and health cover are both part of your financial plan and should be the first two investments out of your savings.
These two insurance plans form the core of your financial protection strategy. Life insurance secures your family's future in your absence, while health insurance shields your finances during medical emergencies. Knowing what each covers, and what it doesn’t, will help you avoid surprises and prepare better for risks.
Both the plans compulsorily serve the safety needs and protect you and your family financially. However, while buying, you should know which of your safety needs these plans will fulfil and which they won’t.
In this blog, we will discuss the difference between life insurance and health insurance in a simple and practical way.
Key Takeaways
|
A life insurance policy is a financial agreement between you and the insurance company. The company promises to give a lump sum amount to your family if something unfortunate happens to you during the policy term.
This money can help your family pay off loans, meet everyday expenses, and achieve important milestones even in your absence . If you are the sole earning member of the family , life insurance becomes even more important.
Many life insurance plans also offer extra rider benefits. These riders give you more financial support in situations like a serious illness or a permanent disability during the policy term.
An OTP has been sent to your mobile number
Sorry! No records Found
Thank You for submitting the response, will get back with you.
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Here are some benefits of a life insurance policy that you should consider:
The total amount spent by Indian households on health and medical-related services in November 2022 was roughly ₹120 billion.
Health insurance is an agreement between you and the insurance company. It promises to cover your medical expenses when you face a health issue like an illness, injury, or accident. It acts as a financial safety net and helps you manage unexpected medical costs.
Many health insurance plans also cover costs before and after hospitalisation. You can get treatment in some of the best hospitals across the country without paying anything upfront through cashless claims. If needed, you can also choose reimbursement after paying the bills.
You can also add extra benefits to your plan with add-on covers. These give you more protection and help you deal with specific medical needs. Today, you can easily compare different health insurance plans online and choose the one that fits your budget and health needs.
With rising medical costs and an unhealthy lifestyle becoming more common, health insurance has become more important than ever.
Some benefits of health insurance are as follows :
Let's understand the difference between life and health insurance in the form of a table:
| Feature | Life Insurance | Health Insurance |
Coverage | Covers the cost of your family’s survival in the case of your early demise or total disability | Covers the cost of hospitalisation, medical treatment, and health-related expenses |
Amount Benefits | The benefit amount is fixed and guaranteed for payment to your family upon meeting the coverage conditions. | The amount of benefit the insurer will pay depends upon the amount actually spent on covered treatments and hospitalisation |
Tax Rebate | Annual premiums are deductible under section 80C & section 10(10D) | Premium is deductible under section 80D |
Deduction Limit | Max deduction in one financial year is ₹. 1.5 lakhs | Max deduction available can go up to ₹. 75,000 |
Others Features | You can invest and grow your money to meet your future financial goals as well. | This is not an investment plan. Will only protect from health-related contingencies. |
With these two insurance plans, you can hope to cover two costly and unpredictable contingencies for your family. Apart from this and other asset insurance, you need to maintain an emergency fund pool.
Whether it is life insurance or health cover, you should choose a plan which can stay relevant for a long period. For instance, your insurance cover need will keep rising whether it is health need or life cover. Here are two things that you must consider while buying a life insurance plan:
Investing money to generate income is easier said than done. So, why not get a term cover with the option to pay a regular sum to your nominees?
If you plan to use a life insurance plan to meet your financial goal, you should choose a plan which:
Life and health insurance are not just financial products, as they are long-term commitments to your family's security and your peace of mind. While life insurance ensures your loved ones remain financially stable in your absence, health insurance protects your savings during medical emergencies.
Canara HSBC Life Insurance offers a wide range of life insurance plans that help you stay protected, grow your wealth, and support your family. Explore the right cover today and take the next step toward complete financial security.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
