5 min read
Updated on Oct 14, 2022
Insurance provides a protective umbrella to anyone who wishes to seek shelter and security against the uncertainties of life. Whether it is life insurance or health insurance, motor insurance or property insurance, each of them has your back when it comes to risks and unpredictable hazards in life. When life itself is unpredictable, it sure helps to have it covered. What remains to be decided though is which insurance policy can provide the maximum coverage and offers the greatest benefit. One confusion that most people often have is, choosing between health insurance and term insurance. This is because both these policies cover serious risks concerning the health of an individual. Yet, one stays unsure whether to buy both or just one of them.
Here we discuss both these policies in detail, highlighting the different types of both, the benefits each offers and the differences between the two.
Before we go on to understanding each policy in detail, let’s first learn what each of them mean. Health insurance, also known as medical insurance or mediclaim, is designed to provide adequate reimbursement for any expenditure on medical treatments for certain health conditions. Of course there are cashless plans too in health insurance, wherein your medical expenses are directly paid by the insurer. Getting health insurance for yourself and your loved ones means that you don’t need to worry about covering the huge cost of the treatment all at once right at that moment. Your mediclaim plan has you covered if you pay the premium regularly.
Term insurance plans come into use after an unexpected untimely death of the person in whose name the policy was taken. This means that the benefits of the insurance policy can be availed not by the policy-holder themselves but by their family members. The nominee would receive financial assistance by way of the policy, provided the policy-holder dies within the tenure of the said policy. By getting term insurance, you can be sure of securing the future of your loved ones even when you’re not there.
Both health and term insurance plans come in different types to suit individual needs.
ere are the various types of mediclaim plans:
Just like health insurance, term insurance plans are also of different types to cater to specific individual requirements –
Each of the policies have their own advantages. that are listed below.
A health insurance plan provides coverage for most medical expenses which include the following:
Term insurance plans have their own advantages such as:
To better understand the exact difference between term insurance and health insurance, here’s a table that explains how the two policy plans differ from each other:
|Term Insurance||Health Insurance|
|Offers financial support to family of insured after the latter’s death||Supports the insured and their family to bear unexpected medical costs during their lifetime|
|Nominal fee charged as premium||Relatively higher premium paid than term plans|
|Does not provide policy maturity benefits||Provides for no-claim maturity bonus|
|Single-time fixed sum assured to nominee||Financial support whenever needed, with no specific time limit|
|Annual premiums to be paid||Premiums can be paid monthly, quarterly, half-yearly or yearly|
While both medical and term insurance have their individual characteristics, both are equally important to secure your future and that of your loved ones, both in this lifetime and after.
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