Wednesday, September 22, 2021
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What Makes Life Insurance Different from Health Insurance?


 Image Courtesy: Shutterstock

Health insurance and life insurance both play a crucial role in giving you financial protection during times of need, especially with the significant tax saving benefits under Section 80D of the Income Tax Act 1951.With the exponentially increasing healthcare costs, it is prudent that you make financial decisions to secure your family’s financial health, with online insurance plans.

Having a comprehensive term insurance coverage through online life insurance plans enables you to avail of the desired protection against life’s uncertainties. On the other hand, having a health insurance plan helps you protect your family and yourself against hefty medical bills in case of medical emergencies. Both these online insurance plans offer coverage for different scenarios.

Here’s what makes life insurance different from health insurance:

  1. Core Benefits

Life insurance becomes essential, especially if you are the only breadwinner of the family. It helps financially safeguard them for the times of your unfortunate demise.Life insurance offers a death benefit or sum assured to your nominee.This type of online insurance provides significant coverage, which can help maintain your family’s lifestyle and achieve their goals after you are not around.

Health insurance protects against the rising treatment costs of various ailments. If you fall sick, this type of online insurance will help cover hospitalization expenses and related treatment costs. Online insurance plans from reputable companies offer cashless treatment facilities at their network hospitals. Health insurance covers the treatment costs for various medical conditions or illnesses under the maximum coverage amount.

  1. Additional Benefits and Covers

Life insurance cover offers a wide range of rider options that you can add to make your policy comprehensive. Some of the rider options are critical illness cover, waiver of premium option, and accidental death benefit. There is also a type of online insurance called term insurance with return of premium, where you get back the premium paid for the policy over time upon the survival of the term. Life insurance also offers additional benefits such as maturity benefit, surrender benefit, and loyalty additions, which you can add to enhance your online insurance plan.This online insurance provides individual and group covers.

Health insurance cover offers some rider options such as critical illness plans, which helps cover a wide range of medical ailments. Also, the maximum coverage amount of your policy increases after adding rider options to your primary health insurance policy. This type of online insurance plan offers additional benefits like no claim bonus and a few free health checkup facilities. In case, you make no claims in the previous year;you can avail of a no claim bonus from your insurer, which acts as a discount on the next year’s premium payment. This online insurance plan offers individual, family floater, and group covers.

  1. Types of Plans

Term insurance is a type of life insurance that offers a significant insurance benefit to your family, in case something happens to you. Since, it is equally crucial to plan for contingencies, term insurance for parents plays an essential role in achieving desired results. Also, you can look into different online insurance options covered under life insurance– child plan, wealth creation, retirement plans, term plans, and savings plan, as per your financial needs.

Health insurance covers broad illnesses, especially when a critical illness rider option is added to the basic cover while purchasing. This online insurance plan offers comprehensive coverage for severe medical conditions.

Image Courtesy: Shutterstock

  1. Tax Benefits

Life insurance offers tax benefits under various sections of the IT Act –Section 80C and 10 (10D).

Health insurance offers tax benefits only under a single section of the IT Act – Section 80D.

Cover Your Life and Health Against Uncertainties with Online Insurance Plans

While purchasing any online insurance plan, you must remember that both health insurance and life insurance offers comprehensive coverage for different types of financial risks. These online insurance plans are distinct elements of your financial portfolio. You should invest in it wisely, especially purchasing online insurance plans from reputable companies.

Life insurance and Health insurance plans provide comprehensive coverage according to your customization. These plans also offer around the clock customer support services, hassle-free claim settlement and options to enhance coverage at different life stages.

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