Diseases are on the rise in today’s fast-paced world. At the same time, medical treatment costs are steadily increasing. A health insurance coverage can assist cover the costs of hospitalisation and treatment for a variety of conditions.
In the event of an unforeseen occurrence, one’s money may be lost in paying for their dependents’ numerous financial obligations.
Both health and life insurance policies are essential components of any portfolio.
Unless a life insurance policy is in place to replenish the dependants’ finances if and when the worst happens, there may not be much left for future generations.
In times like these, acquiring a good insurance policy for yourself and your family can provide the extra safety you need.
Health Insurance vs Life Insurance
A life insurance policy, as the name implies, offers coverage for a specific length of time, or ‘term.’ Term insurance is a pure protection life insurance policy that pays out a guaranteed amount if something bad happens during the term. It compensates the insured’s nominee for loss of income.
The idea is that the insurance will be enough to replace lost income in the future, as well as cover existing expenses and obligations like funeral charges, hospital bills, and other debts—or to support college savings accounts or retirement years.
Despite the loss of you and your wage-earning abilities, this provides financial stability to the family, ensuring that they do not struggle.
Medical expenses such as doctor’s visits, hospital stays, drugs, tests, and treatments are covered by health insurance. This makes it easier for people to afford medical treatment and stay healthy.
Here are some things to think about before choosing the correct insurance plan:
The sooner you start, the better: Because term insurance plans provide death benefits, premiums are determined by the insured’s age. As a result, it is better to purchase term insurance at a young age and for a larger sum insured.
Examine your insurance requirements: What is your financial contribution to the family and how many people are financially dependent on you? Is there anything on which your family can rely to pay bills and repay debts following your untimely death? The answers to these questions should assist you in determining how much insurance you require.
Choosing the Insured Amount: The quantity of sum insured should be planned according to the stage of your life cycle, and the cover should be sufficient to provide the insured’s family with an adequate amount in the event of the insured’s death.
Compare insurance plans: Before choosing one, compare at least three options. This would undoubtedly assist in making a wise decision by comparing the following variables.
1: Each plan’s total payout
2: The premium paid for the desired Total Payout.
3: Policy terms are available.
4: A high rate of claim settlement
5: Riders included in the plan
Tax advantages: A life insurance policy can help you save money on your taxes. This could be a deciding factor as well.Health insurance, on the other hand, is critical in today’s environment. Premiums paid on health insurance are tax deductible under section 80D of the Income Tax Act.
Section 80C of the Income Tax Act allows you to deduct insurance premiums paid to insure your own life, the life of your spouse, or the life of your child.
Coverage: A health plan should be chosen based on the many coverages available, such as pre- and post-hospitalization, childcare costs, transportation, and illnesses that you may be at risk of due to your family’s medical history, among others.
Hospital Network Coverage: Inquire about your insurer’s hospital network coverage; this will save you time.