Life Insurance And Health Insurance: Know The Key Differences
If you’re planning plans and want to ensure your financial and physical health are covered. Unfortunately, some believe they are the same product or will be covered for both by buying just one policy. Even if combination plans are an option, this is rarely the case. So today, in this article, we discuss the difference between a life insurance policy and a health insurance policy.
What is Life Insurance?
According to the terms of the contract, the insurance company will pay the bereavement family the insured sum following the policyholder’s death.
The amount received as part of the beneficiary’s compensation is not taxable. Therefore, the entire sum reaches the family without being reduced. Thus, life protection provides coverage for all of the family’s financial requirements and any future goals or investments.
Also Read: Want To Buy Whole Of Life Insurance? Understand The Pros And Cons
Advantages of Life Insurance Plans:
The two most significant advantages of life insurance are safety and financial security.
- Generally, payouts are tax-free.
- A death benefit that is assured.
- Tax advantages come with life protection insurance.
- However, buying a term policy shouldn’t be prompted by tax advantages.
- According to current tax laws, this policy provides tax advantages and exclusions.
What is Health Insurance?
Health insurance comes to your aid only when you have health problems and require hospitalisation or medical treatment. For their health insurance, policyholders pay a certain premium. After incurring medical costs, your insurance provider repays you for them, or they handle the costs directly with the hospital or facility where you had treatment. These depend on the health insurance plan you have selected.
Also Read: How Critical Illness Insurance is Beneficial For High Earning Professionals
Comprehensive Benefits of Health Insurance:
- Free treatment at network hospitals.
- Domestic coverage for home care.
- Charges for the patient’s ambulance transportation.
- Pre-existing disease coverage
- Renewability for all time.
- Bariatric treatments are covered.
Difference Between Life Insurance And Health Insurance:
When the insured dies, or sometimes when they are told they have a terminal illness, a life insurance policy with Terminal cover included pays out a lump payment. Term life insurance is often taken outside for a specific duration, in which you’ll pay a monthly premium. The policy will not continue to be in effect when this period is over.
This kind of insurance is mostly derived so that you can rest easy knowing that your loved ones will be cared for financially in the event of death. In addition, if you become ill or are involved in an accident requiring medical attention, health insurance, frequently known as “private medical insurance,” will pay for such expenses.
Giving you access to quick, top-notch private medical care that can cover hospital costs, treatments, medications, and other costs you may pay enables you to avoid NHS waiting lists and, as a result, recover more quickly.
Once more, a monthly premium is required. However, unlike life protection, health insurance often has an excess that you must pay before you may receive benefits. This is because health insurance will pay for your medical costs, while life insurance pays out after your death.
Can I get life insurance in the UK without a physical examination or health questions?
Most companies will do a health check on you when you apply for life insurance. Because they are used to judge your health, which is a major factor in determining your monthly premiums, it is rare for a reputable insurer to approve an application without one.
However, you might be able to find a company that would grant you life insurance without having a medical examination. Make sure you carefully review their terms and conditions.
Therefore, your life insurance policy will cost less if you eat properly, exercise, and overall lead a healthy lifestyle than a smoker who leads a passive lifestyle and has a poor diet because the latter is at a higher risk for health problems.
Conclusion:
Both life insurance and health insurance are essential needs in terms of money. Choosing an appropriate cover for both becomes simpler if you consider your health, responsibilities, age, profession, and other criteria. Do you worry about how a current medical issue can affect your life insurance application? Then, get in touch with us; the knowledgeable consultants we partner with can identify suppliers who can meet your needs because of their “whole-of-market” perspective.
