When deciding to buy health insurance, one can choose from a variety of different plans. Upon purchasing health insurance, one has to pay a premium for a long period of time. Therefore, it is wise to be aware of the two main insurance categories. These are Life insurance and Health Insurance.

Life Insurance

Life Insurance is when a particular amount of money is paid by the insurance

company in case of the insurer’s premature death. The main idea of life insurance is to make up for income loss due to the death of an individual. The insured money replaces this income. Life Insurance also takes care of expenses such as medical and funeral expenses as well as debts incurred by the insurer.

This provides financial security to the deceased’s family in case the bread earner of the family dies. If the deceased person was not the sole earner, still the family can have some monetary support through life insurance.

To avail of life insurance, the person must pay premiums at an allocated time in order to receive financial benefits at the time of the insurer’s death.

Health Insurance

Health Insurance provides financial coverage during medical emergencies. The insurer must pay a fixed premium to avail of health insurance coverage. Through medical insurance, one can pay for medical expenses, hospital bills, lab tests, and procedures easily. Health Insurance also provides comprehensive coverage against critical illnesses such as cancer or a heart attack. You can also add coverage for specific illnesses or accidents as well as disabilities.

 If a medical emergency occurs, the person can pay from their own pocket at that time and then get the money reimbursed by the insurance company. Another option is that the company pays the bills directly depending upon the kind of health coverage that’s is purchased.

Takeaway

The difference between health insurance and life insurance is that health insurance relates to medical bills and hospitalization and is paid only when a medical situation occurs. At the same time, life insurance is a lump-sum amount that is paid upon a person’s death.