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Health Insurance vs Life Insurance: Which One Should You Buy?

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Life insurance has been an important buy for families having just one earning member. At least life insurance be of some help in future in case the sole earning member is, unfortunately, no more. However, health insurance has become quite a trend in recent times. People are concerned with their health more than ever. Rising pollution levels and increasing risk of accidents are just two contributing factors in this case. So, health insurance has become important. The real question is, however, which one to buy. Whether life insurance is as important as it always has been? Is health insurance the only thing worth considering? Read on to find out in this health insurance vs life insurance comparison.

Health Insurance vs Life Insurance

Health Insurance vs Life Insurance

Purpose

The purpose of a health insurance policy is to help you stay healthy. For instance, if you get injured in an accident, a health insurance policy can cover the treatment. However, the purpose of a life cover is different. It is to shield a family or a person from the financial loss resulting from a member’s death. In essence, a health cover focuses on you as a living entity whose health is important for himself/herself. A life insurance policy treats you as an integral part of a family whose absence will result in a great financial burden on the family.

Scope

A health insurance has a narrow scope. It covers health of people signed up for the cover. Beyond that, there is no cover for anybody. A life insurance has a wider scope. You can choose a few nominees to get the financial help from the insurer in case of your untimely demise. You can opt for the cover to kick in in case of your demise from an accident or a terminal illness. So, while the two covers have a singular purpose, a life insurance cover more grounds than health insurance.

Also Read: Always Renew You Health Insurance on Time

Payout

A health insurance cover provides financial assistance in case of a health issue. However, it can cover costs only up to a certain  amount. After that, you are on your own. A life cover can provide as big a cover as you may want. You cannot alter the terms later though, so be careful. Also, you can opt for a life cover to pay all the money as a lump sum or in instalments.

Tenure

Both policies have different tenures. A health insurance policy stands for one calendar year. This means you have to renew health cover every year. A life insurance policy will stick with you for many years. However, paying premium on time here is the key. A life cover will stay in effect only if you continue paying premium as and when required.

Also Read: Benefits of Term Life Insurance

Health Insurance vs Life Insurance – Conclusion

A health insurance is an important cover for you. It covers not just your health but anyone else you wish for it to cover. However, it has no benefits beyond that. Also, its cover is limited up to a certain amount of money. A life insurance, in contrast, is to cover a greater problem (untimely death of a family member). For this purpose, you can opt for a high cover amount. You can opt for as many nominees as you wish to. More than that, it can cover issues from accidental deaths to even terminal illnesses. A term insurance policy is a form of life insurance.

However, you may be wondering which one to buy. The decision is never as easy as you think. That said, you have a need for both. Rising healthcare costs ensure your budget is disturbed every time there is some medical emergency. A health insurance can save you from that. Also, there a re a number of families that still have a single earning member. A life cover helps shield the non-earning members from at least the financial burden of losing (unfortunately) the earning member. Increased risk on health in today’s times warrants the use of both covers. Just check first the offers from various insurers in either case and then decide.

To conclude, the winner of this Health Insurance vs Life insurance comparison is meant to be you. After all you health and life are more important than everything else.

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