When it comes to securing your health and life, there are a lot of options to choose from. Life insurance is one of the most common ways to financially protect your loved ones if something unexpected happens. But there’s another option that can be just as important: health insurance. Now, you might wonder, “Aren’t health and life insurance pretty much the same thing?” Well, not exactly! They’re related, but are different in many ways.
In the world of life insurance, you’ll often hear about “health riders” - so, what exactly are they, and how do they differ from standalone health policies? Let’s dive into this topic and understand the differences, advantages, and how you can use them to maximise your financial protection.
Key Takeaways
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Imagine you’re buying a regular life insurance policy. It’s like buying a basic phone, one that handles the essential functions of life, like protection for your family and loved ones in case something happens to you. But let’s say you want some extra features. You want better camera quality or a more powerful battery. That’s where the “health rider” becomes important.
A health rider is an add-on or a supplement to your existing life insurance policy. It provides you with health coverage benefits but in a more integrated and cost-effective way. Rather than taking out a separate health insurance policy, a health rider lets you access health benefits while still maintaining your life insurance.
Premiums paid for certain health-related riders, like critical illness riders, are eligible for tax deductions under Section 80D of the Income Tax Act.
Source: ClearTax
A standalone health policy is a comprehensive health plan that covers expenses related to medical emergencies, such as medical treatments, surgeries, hospital stays, outpatient consultations, and even some preventive care. This health insurance policy generally offers more robust coverage for health-related expenses, which may be more suitable for individuals who want dedicated medical coverage. Unlike health riders, standalone policies are completely independent, which means they often come with their own premiums, terms, conditions, and network of hospitals.
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Now that we know what each option is let’s look at the key differences between health riders in life insurance and standalone health policies. These differences can be the deciding factors:
So, how do you choose between a health rider in a life insurance policy and a standalone health insurance policy? Here are a few questions to ask yourself:
What do you need more: life insurance or health coverage?
If you’re mainly focused on securing your family financially in case of your death, then life insurance with a health rider might be the way to go. It offers additional health benefits without requiring a separate policy.
Do you have specific health needs?
If you need more comprehensive health coverage, such as outpatient treatment, maternity benefits, or preventive care, a standalone health policy may better suit your needs.
If you’re looking for affordable health coverage and already have life insurance, a health rider can give you some medical benefits at a lower premium. But if you’re willing to pay more for extensive health coverage, a standalone health policy might be the better choice.
Health riders are great for people who want an add-on to their existing life insurance and are looking for basic health coverage. Standalone health policies are ideal for those who want comprehensive health insurance that offers more flexibility and a wider range of benefits. Choosing the right option depends on your personal circumstances, health needs, and budget.
Canara HSBC Life Insurance offers a variety of products designed to secure your life and health. Whatever your choice, make sure you’re protecting yourself and your loved ones with the coverage that best fits your needs!
A medical emergency refers to an illness that requires instant medical care. Delays in medical care can often lead to situations like permanent damage of a body part or even death.
A medical emergency case include heart attacks, strokes, severe accidents, breathing difficulties, severe allergic reactions, or uncontrollable bleeding. In such cases, immediate medical intervention is critical to stabilise the patient and prevent further complications.
Accidental death refers to a death that occurs unexpectedly and unintentionally due to an external, unforeseen event or injury. This could include incidents such as car accidents, falls, drownings, accidental poisoning, injuries caused by natural disasters, violent acts, or workplace accidents.
Yes, you can claim for accidental death if your insurance policy includes accidental death coverage. In the event of a death caused by an accident, the beneficiaries can file a claim with the insurance provider, provided the cause of death meets the policy's criteria. It's important to review your policy to ensure it covers accidental death and to follow the claim process, which typically involves submitting documentation such as the death certificate, accident report, and any relevant medical records.
Accidental death coverage typically does not cover deaths resulting from suicide, self-inflicted injuries, natural causes, or deaths occurring while committing illegal activities. It may also exclude deaths caused by substance abuse, war, or hazardous activities that are explicitly excluded in the policy terms. Always review your insurance policy for specific exclusions.
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.
