For support contact info@camsrepository.com

Difference Between Life Insurance and Health Insurance

Difference Between Life Insurance and Health Insurance
March 17, 2021 camsrep

Do you often get confused between life insurance and health insurance? Have you ever wondered why you need to buy life insurance when you have health insurance? Want to know the difference between the two?
We have simplified it here, just for you.

Scenario 1

While driving home from work, Amit met with an accident. He will require surgery and will be monitored in the ICU for two weeks. Amit, unfortunately, does not have health insurance. He has to cover the cost of his medical care out of his own pocket.

Scenario 2

Rishab becomes ill unexpectedly and succumbs to cardiac arrest. He leaves behind his wife, two children, and his father. He was fortunate that he had a health insurance plan to cover his medical costs. Unfortunately, he only had enough funds to cover four months’ worth of expenses. His family would have been able to live comfortably after his death if he had purchased life insurance.

Have you now understood the basic difference between life insurance and health insurance? Read more to know how they can benefit you:

Life Insurance

  • Provides financial coverage in the event of death or disability
  • Few life insurance policies also provide financial compensation for a period of time after retirement
  • Offers tax incentives – the amount you pay as premium will be subtracted from your gross taxable income, provided the premium amount used for tax purposes does not exceed 10% of the sum assured

What isn’t covered by life insurance?

If death occurs as a result of the following factors:

  • Alcohol or drug abuse
  • War or terrorism
  • Suicide or self-inflicted injuries
  • Gross negligence or carelessness

Health Insurance

  • Falls under the umbrella of general insurance, which compensates you financially for any loss other than death. That is, it protects all of your assets financially against loss, injury, theft, and other liabilities.
  • Covers the cost of medical care by paying for or reimbursing the cost of medical care for the treatment of any injury or illness. This includes medical bills, treatment cost, hospitalization etc.
  • Has add-on benefits such as maternity care, pre-existing disease coverage, accident coverage etc.
  • Helps you save money on your taxes as you will be eligible to lower your taxable income by paying the premium amount.

What isn’t covered by health insurance?

  • Hospitalization as a result of war or events related to it
  • Any medical condition that occurred prior to purchasing the policy or during the waiting period
  • Use of intoxicants or hallucinogenic drugs which has resulted in a medical disorder
  • Non-allopathic treatments such as acupuncture, naturotherapy, yoga, and other alternative therapies
  • Diagnostic fees if the tests do not support the presence of the disease covered
  • Accidents/injuries caused by oneself

Hope this helped you identify the difference between life and health insurance and the necessity to invest in both.

Once you invest in a good health and life insurance policy, the next most important step is to e-Insure. e-Insurance is a safe digital vault to store and access all your policies in a single dashboard, at your convenience. Ensure that the effort you take to secure your family comes to your use when you need it. It only takes a few minutes to set up an e-Insurance account, but comes with multiple benefits.

Follow us here and on our social media platforms to stay updated about e-Insurance.

Creating an e-Insurance account takes just a few minutes but comes with life long benefits.

e-Insure today with PolicyGenie. Click the link below.

For more details on E-Insurance, follow us on Instagram, Twitter, Facebook and LinkedIn