In today's uncertain times, having an insurance cover is essential. Be it to safeguard your material assets such as your car, home or more importantly your life and health.
While Health Insurance covers the expenses incurred towards treatment, Life Insurance can help your family reduce their financial burden in case of your untimely demise.
Let's check out a few key differences between a Life Insurance & a Health Insurance policy:
|Feature||Life Insurance||Health Insurance|
|Why should you buy this?||Financially safeguards your family in case of your untimely death. It can help them maintain their lifestyle and achieve their life goals even when you are not around.||Covers costs of hospitalization & related treatment. These days most policies offer cashless treatment facility at network hospitals|
|Core benefit||A Sum Assured (Death Benefit) is paid to the nominee of the person (Life Assured)||Covers the treatment cost for illnesses/ medical conditions subject to a maximum coverage amount and other conditions|
|Additional Benefits||Maturity Benefit, Surrender Benefit, Loyalty Additions, etc. can be added on top of the base cover||No Claim Bonus can be added in case of some policy types. Few health insurance companies offer free health check-ups as well|
|Types of covers||Individual (single life), Group coverage||Individual, family (family floater policy) or group coverage|
|Types of Plans||Term plans, Savings, child-related (wealth creation), Retirement etc.||Comprehensive health insurance plans, critical illness cover etc.|
|Tax Benefits||Under Section 80C, Section 10(10D) of the Income Tax Act||Under Section 80D of the Income Tax Act|
You must also remember that both Life Insurance and Health Insurance are distinct elements of your financial portfolio covering different types of financial risks. It's time to undertake a financial planning exercise to learn more about your requirements and make an informed decision.
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You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws.