Life Insurance VS Health Insurance VS Term Insurance: When we use the word insurance in common parlance, we are not thinking about its different types, different functions, but we should know some basic things .
Life Insurance VS Health Insurance VS Term Insurance: Insurance is a very broad term. When we use the word insurance in common parlance, we are not thinking about its different types, different functions, but we should know some basic things. For example, what is the difference between Life Insurance and Health Insurance (Life Insurance VS Health Insurance). Also term insurance is also a popular product.
All these different insurance products There are, who give you financial help in case of death or illness. While life insurance provides financial support to your nominee after your death, health insurance covers the cost of treatment in case of illness or accident. You can take life and health insurance yourself. Or your employer gives you insurance cover. Here we will try to understand the difference between life and health insurance in some points. Along with this, we will also understand the term insurance term.
Life Insurance VS Health Insurance: Difference between Life Insurance and Health Insurance
What are the benefits of having life and health insurance? (Benefits of Life Insurance VS Health Insurance)
In life insurance, the sum assured is given to the nominee of the policyholder. On the other hand, health insurance looks after the treatment of illness, medical condition, etc. of the policyholder. You can also get maturity benefits, surrender benefits, loyalty additions, etc. on life insurance. On the other hand, you can get no claim bonus on health insurance. Some companies also offer free health check-up. Life insurance provides financial security to your family in case of your untimely death. Whereas health insurance covers the expenses of your hospitalization and treatment.
What is the tax benefit available? (Tax Benefits)
You can get exemption on life insurance under section 80C and 10(10D) of the Income Tax Act. At the same time, you can get exemption on health insurance under section 80D.
Coverage and Plan Type
Individual or group plan can be found in life insurance. In this, you can get term plans, savings, focused plans on children, plans on retirement. On the other hand, health insurance can be individual, family or group and in this you can get comprehensive health insurance or insurance on coverage of critical illness.
What is Term Insurance Plan and what are its benefits?
Term insurance is such a financial product, which gives a fixed amount for a fixed period. It is more affordable and you can buy it for a fixed period. Most of the term insurance plans have an assured minimum sum. That is, under this, the insurance company assures you that for whatever situation you take coverage, even if you do not need it during the coverage term or you do not need to make a claim, it will give you the minimum amount.
Difference Between Term Insurance and Life Insurance
While life insurance provides coverage to your family in case of your death, term insurance gives you cash benefits for a specified period. By the way, premature death is also covered during the coverage term. That is, death benefit is payable in both.
Term policies are also customized as per your requirements. They are also more affordable. It also provides coverage to your family if something happens to you during the coverage term itself. The term of life insurance can be from 5 to 30 years and term insurance can be from 10 to 35 years. The premium is cheaper in term insurance.
