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Blog > Health Insurance > Health Insurance And Life Insurance And Why We Need Both?

Life insurance is a cover that offers protection against the loss of income in case the insured person passes away or becomes disabled either permanently or temporarily. Whichever the case be, it is the beneficiary of that life insurance policy who gets all the proceeds in case the policy holder dies. This money in turn provides the much needed financial support to the family of the deceased.

On the other hand, health insurance offers coverage for paying off medical and surgical expenses along with hospitalization charges incurred by the members of the policy. You have the option to opt for medical reimbursement or you can directly opt for a cashless treatment at the network hospital. Having health insurance policy allows an individual to manage his or her finances in a better manner in case there is a medical emergency.

Difference between the Health Insurance & Life Insurance

There are numerous points of difference between life insurance and health insurance. Given below are a few of them:

1. A life insurance plan is designed to offer monetary benefits to the beneficiary in case something happens to the policy holder. However, a health insurance plan is designed to take care of the medical expenses incurred by the policy holder or any other member of the policy.

2. The money you spend on a life insurance plan is recovered once the policy matures, whereas no money can be recovered in a health insurance plan.

3. In a life insurance plan, you do get returns, but only after the policy matures, that is, you will continue to pay the premium for the entire policy period. For example, if your life insurance policy is for a period of 40 years, then you will have to pay the premium for complete 40 years. However, in a health insurance plan, you do not get any returns for the medical expenses incurred. The money you pay as premium is only utilized in case you face a medical emergency.

Why do we need Life Insurance?

Life insurance is a financial cover for situations of emergency related to a policy holder’s life like - death, retirement, accident, disability, etc.

There is a need for life insurance as it offers one with the following benefits:

1. The sum insured of a life insurance policy is the lump sum amount that your family receives in case you die. With life insurance, there comes a surety that your immediate family will get the much needed financial support in case of your death.

2. Life insurance helps in taking care of education along with other vital needs of your children.

3. It is designed to provide you with future savings plan so that you have a constant source of income even after retirement.
4. Having a life insurance plan also tends to act as an extra source of income in case your income reduces as a result of an accident of a serious illness.
5. It provides for financial emergency as well as fulfilling other lifestyle requirements.

Why do we need Health Insurance?

Neither do we human beings have the power to predict the future events of our life or that of any one else, nor do medical emergency arrives with an announcement. In such a case, planning in advance is the best thing to do.

When it comes to planning ahead for medical expenses what better option than choosing health insurance? You can choose from a wide array of health insurance plans available in the market. Each plan is designed to take care of one’s personal health care needs while offering a different set of benefits.

It is also important to understand that there exists a need for health insurance. Following are the benefits offered by a health plan-

1. You get the much needed financial assistance in case there is a situation of medical emergency.

2. A health care plan takes care of not just hospital expenses; it also takes care of both pre-and-post hospitalization expenses.

3. It offers you the facility to opt for riders for critical illness such as cancer, heart attack, liver transplant, etc. However, every insurance company has a separate list of diseases labeled as critical illnesses. Thus, one must always check the list of diseases covered in case while opting for a critical illness rider.

4. It also offers coverage for maternity as well as pre-existing diseases but they come with a waiting period and every health insurance company has a different waiting period.

5. You need not pay out of your pocket when settling the hospital bills in case it is a network hospital. Everything will be taken care of by the TPA (third-party administrator) and your health insurance company. Thus, allowing for easier bill settlement.

6. Having health insurance gives you a peace of mind when dealing with a situation of medical emergency.

Why do we need both?

Health insurance and life insurance are the two most crucial types of insurance plans. While health insurance offers immediate financial assistance to take care of hospitalization expenses, life insurance offers financial support to the beneficiaries of the policy in case of demise of the policy holder.

Both happen to hold equal importance in an individual’s life. For securing our health, it is best to have a health insurance policy. And, to secure our life as well that of our loved ones in case of death, it is essential to have a life insurance policy.

Get more info about Apollo Munich health insurance products and offerings here:

Medical Insurance
Individual Health Insurance Plan
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Health Insurance Plan


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