Life Insurance And Medical Insurance

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
• Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
• Do more with plans that offer pure protection, retirement planning and investment options

Insurance in today’s time has become extremely important and it is recommended that everybody purchases one for themselves. There are host of insurance options that one can buy and two of the most famous ones are life insurance and health insurance. These type of insurance options cater to their customers and takes care of their needs in their own manner.

Life Insurance: Life Insurance is a signed contract between the insurance company and the insured where the former provides cover to the latter by paying a definite sum of money in case the person dies or completes the stipulated policy term. The insured in return in order to keep the plan active and receive benefits pays a specific sum of money called the premium which can either be paid as a lump-sum amount or paid in installments.

There are various types of life insurance schemes that you can purchase. They are:

• Term Life Insurance: Term insurance can be called as the purest form of insurance. This type of insurance plan only provides cover for a specific period of time, during which the customer is required to pay premiums in order to keep the policy in force. In case the insured dies due to an unfortunate event, the insurance company pays the nominee a lump-sum amount called the death benefit and the plan expires.
• Whole Life Insurance: Whole life insurance provides cover to the insured for life, unlike term insurance which provides protection only for a specific period of time. Whole life insurance is slightly expensive as compared to term insurance, since it not only provides a death benefit in the event of the insured’s death, but also provides a maturity benefit if the person survives the term. This is one of the reasons why premiums are slightly expensive for whole life insurance as compared to term insurance.
• Annuity plans: These types of plans not only provides cover but also plays a role in maximising a person’s savings. There are plans like ULIP, Pension/Annuity plan, Endowment/Money back plans, which aim to build a corpus for customers by investing a part of the premium in different market instruments and utilising the rest for providing cover. People who want a tool which provides both insurance and helps in investing money are recommended to purchase plans like ULIP, pension, or an endowment plan.

Health Insurance: Purchasing health insurance has become extremely important in today’s time since a lot of many people are falling sick due to various health implications. With the medical inflation expected to rise in future, having health insurance has become a necessity. Health insurance is nothing but a signed agreement between the insurance company and the insured where the former will cover the latter in case the person is hospitalised due to any health implication and will take care of his/her hospital/medical expenses subject to it being a family floater plan. Health insurance plans also cover the insured’s family members in case they get hospitalised due to an injury or health condition.

Difference between Life Insurance and Health Insurance

Can a person have both Life Insurance and Health Insurance?

Yes, a person can avail of both life insurance and health insurance. Life insurance covers people and ensures that the future of their family is safe and secure.

Health Insurance has become a must in today’s time since medical inflation is expected to rise and more people are expected to suffer from various health conditions. Health Insurance ensures that the expenses arising from these medical conditions are met and ensures that a family is safe from any type of financial stress.

It is important that an individual compares different plans and after proper research decides on the plan which is most suitable for him/her.