Subscribe to get weekly insights
Always stay up to date with our newest articles sent direct to your inbox
calendar_monthPublished on 6 Jan, 2023
autorenewUpdated on 30 Dec, 2024
visibility4216 Views
nest_clock_farsight_analog4 min Read
Written by Nidhi Goyal
Reviewed by Munmi Sharma
favorite0Like
favoriteBe the First to Like
People often get confused about health and term insurance as these two are mistaken for the coverage they provide. They play different but integral roles in your life; understanding them will help you understand their importance. The term insurance is the insurance that covers your family in case of your unfortunate death. In contrast, health insurance promises financial compensation for medical treatment costs in case of planned or unplanned hospitalisation. There are variations in the premium, purpose, scope, and applicability of both kinds.
This article will shed some light on the meaning, differences and benefits of term and health insurance for your overview.
Health insurance covers the medical costs incurred due to accidents or diseases. It promises to pay for the insured's hospitalisation and other medical expenses. The alarming rise in lifestyle illnesses among individuals of all ages in recent years has increased the necessity for health insurance.
The sum insured, or the maximum amount the insurer would pay to the policyholder in the event of a medical emergency, is one of several options the insurance company provides under the policy. The insured members pay a premium to use health insurance when needed.
Term insurance is a bond between the policyholder (insured) and the insurance company wherein, in the event of the policyholder's untimely death, the insurance company pays a predetermined sum to the insured person's family. Term plans are important for long-term financial planning, as you shall discover.
It's important to realise that term insurance is the most basic type of insurance coverage available, providing your family with complete financial security against the uncertainties of life.
>> Also Read: What Happens to a Family Floater Policy if the Proposer Dies?
Both term insurance and health insurance are necessary for a financially stable existence for you and your family. The main variations between the two are as follows:
Factors | Term Insurance | Health Insurance |
---|---|---|
Objective | It provides financial support to your family after an untimely demise. It has no benefit during your lifespan. | It provides financial support in case of a medical emergency. |
Premium | The premium you have to pay for term insurance is easily affordable. | The premium you have to pay for health insurance varies according to the age and health of the insured. Therefore, buying health insurance in good health and at an early age is advisable. |
Renewal | It does not have renewal benefits. You must pay the same amount every year to keep the policy running. | If you do not claim under your health insurance policy, you get No-Claim Bonus in your next renewal. |
Tax Benefit | Section 80C of the Income Tax Act allows for deducting term insurance premiums from income up to a maximum of Rs. 1,50,000. | You can get the deduction for medical insurance premium 80D Income Tax Act 1961. |
Premium | More affordable than a health insurance policy. | Premium depends on the age of the insurer. |
Policy Duration | 5 to 40 years | 1 to 5 years |
The various types of health insurance include:
Health insurance protects you financially during a hospitalisation. The following are health insurance benefits:
Care Health Insurance provides its customers with comprehensive health insurance plans such as health insurance plans with maternity coverage, comprehensive health insurance plans for individuals and families, group health insurance plans, and more. With a solid network of 24,800+ cashless healthcare providers across India and a smooth claim settlement process, Care Health Insurance can be a good option for covering your loved ones.
Some of the term insurance plans include:
Term insurance offers a financial benefit to the family of the insured after an untimely demise. The following are a few benefits:
Disclaimer: The above-mentioned information is for reference purposes only. Plan features, benefits, coverage, and underwriting of claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.
favoriteBe the First to Like
How to Download Care Health Insurance Policy? Care Health Insurance in Health
How to Check the Status of Your Health Insurance Policy? Care Health Insurance in Health
What is the Use of ABHA Health Card? Care Health Insurance in Health
Do Health Insurance Premiums Increase Every Year? Care Health Insurance in Health
Why Group Medical Insurance is Important for Employees? Care Health Insurance in Health
Understanding Telemedicine Health Insurance- A Comprehensive Guide Care Health Insurance in Health
What are Teleconsultation and TeleHealth Insurance? Care Health Insurance in Health
How Can Advancements in Technology Impact The Future of Health Insurance? Care Health Insurance in Health
keyboard_arrow_down Health Insurance Articles
open_in_newkeyboard_arrow_down Travel Insurance Articles
open_in_new