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:
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.
|Feature||Life Insurance||Health Insurance|
|Why should you buy this||It protects the family in case of the insured’s death and ensures that they are not affected financially.||It covers the insured and/or his/her family member in case they are hospitalised due to any health condition or injuries.|
|Core benefits||Sum assured which is called the death benefit is paid to the nominee in case of the insured’s death.||Covers the cost for the treatment of any health condition or injuries (as per company’s terms and conditions) by providing the maximum cover amount.|
|Additional benefits||Loyalty Additions, Maturity Benefit, Surrender Benefit, etc.||No-Claim Bonus in case the insured does not claim insurance for a considerable period of time.|
|Types of plans||Term plans, pension plans, retirement plans, etc.||Critical Illness cover, comprehensive health insurance policies, etc.|
|Types of covers||Individual and Group plan.||Individual plan, family/floater plan, and group plan.|
|Tax benefits||Tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961.||Tax benefits under Section 80D of the Income Tax Act, 1961.|
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.