Life Insurance and Health Insurance are Complementary, Not Alternatives
A very common occurrence that has been noted to be taking place these days is that people have begun considering health insurance as an alternative to life insurance. The main reason behind such a move seems to be a simple lack of knowledge about the fact that a life cover and a health insurance are not alternatives to each other. The two insurance policies are in fact supposed to complement one another.
Another reason is that there is an abundance of insurances available, which makes it rather easy to get confused about the various types of covers. There is life insurance, which has its own types like endowment and term, and then there are the non-life insurances like health insurance. For a better understanding of why one needs both life and health insurance, it becomes necessary that we first understand both kinds of insurance policies.
Why Do People Need Life Insurance?
The main objective of a life insurance policy is to provide the policy holder with a life cover. When a policy holder wants to ensure that his family members are able to carry on with their present lifestyle even after the policy holder’s death, he opts for a life insurance. This type of insurance provides the beneficiaries with financial benefits that may replace the policy holder’s income in the household.
Why Do people Need Health Insurance?
Health insurance aims to cover the cost that is incurred in the treatment of the policy holder’s illness or medical conditions. This coverage is subject to a total sum assured and does not provide a life cover. This means that while you will be paid for your medical costs, there is no payout if the policy holder was to die.
By the given purposes of both types of insurance cover, it is clear that they are, despite common belief, rather different from each other.
The Need for Both Kinds of Insurances in Your Portfolio
Both medical and life insurance covers offer distinct benefits to the policy holders, making it rather obvious that an individual requires both in their portfolio. Delving more into the details of both, it is clear that individuals who are the primary breadwinners of their households, must opt for a life cover. The policy holder should keep in mind that the coverage they choose is adequate to cover their liabilities and provides enough for their household expenses.
On the other hand, there is health insurance. Medical contingencies may strike anyone at anytime. Owing to the continuously growing medical sector of our country, healthcare does not come cheap. Any medical emergency has the ability to put you and your finances under considerable stress. That is why, it is very important for individuals to have ample health insurance in place.
It is clear enough that while health insurance helps you stress free during your lifetime, life insurance is to provide financial support to your family members after your death. The best idea is to consult your financial planner, if you haven’t already, and arrange the necessary coverage that suits all your needs the best.
**To understand exactly about the policy coverage, exclusions etc. read the Policy Wordings carefully.**