Health Insurance For Seniors Providers
Difference Between Health And Life Insurance?
Often health insurance is confused with life insurance and many think both are the same thing. No, each is different in terms of what they cover and the purpose for which they are offered. In life insurance, the insurance company offers coverage for the risk to life.
In the event of an unexpected situation by which the policy holder passes away, the nominees get a lump sum that they can use to meet various expenses in a difficult situation wherein they are denied an income.
On the other hand, health insurance pays up for hospitalization and other medical expenses that occur when the insured person becomes sick and need treatment. The payment is a lump sum that can be claimed against the bills generated.
Life insurance vs health insurance
Hence it offers cover for the risk against health. Here is a look at the key difference between the two:
Often health insurance is confused with life insurance and many think both are the same thing. No, each is different in terms of what they cover and the purpose for which they are offered. In life insurance, the insurance company offers coverage for the risk to life.
In the event of an unexpected situation by which the policy holder passes away, the nominees get a lump sum that they can use to meet various expenses in a difficult situation wherein they are denied an income.
On the other hand, health insurance pays up for hospitalization and other medical expenses that occur when the insured person becomes sick and need treatment. The payment is a lump sum that can be claimed against the bills generated.
Life insurance vs health insurance
Hence it offers cover for the risk against health. Here is a look at the key difference between the two:
- In life insurance nominees is paid out in the event of the policy holder passing away, but for health insurance, it is the policy holder who is paid for medical expenses up to the point of coverage offered by the chosen plan
- When payout happens in life insurance, it can be obtained as a lump sum as well as through installments, life insurance is not for needs but also for life security.
- When life term policy gets over, the policy holder gets payment on a yearly or monthly basis which continues throughout the person’s lifetime. So, they get back invested amount. None of this applies for a health insurance policy
- While life insurance is long term, health insurance is only for a short term, short term health insurance is for short term plan and the maximum term period is 12 months. In this short term plan, most of the illness is covered.