1. Health insurance is more of a
medical (including but not limited
to dental, vision, etc.) well-being
of an insured.
Life insurance is more of a
financial well-being of the
beneficiary of an insured.
WHO?
2. Health insurance can be simplified in
terms of money invested by insured
in reducing the unpredictable
and huge healthcare expenses,
if any; and no potential gain in
future from the money itself.
Life insurance can be simplified in
terms of money invested by insured
in reducing the financial burden of
the beneficiaries in future in the form
of the then potential gains.
WHY?
3. The various products of health
insurance are based more on the
medical needs of the insured
focusing the reduced out of
pocket expenses.
The various products of life
insurance are based more on the
financial needs of the insured
focusing the increased capital
gains.
PRODUCTS
4. Health insurance does not allow
premiums to be accumulated for
subsequent years for future
benefits, and the premiums cycle
restarts after each calendar year;
as if the health insurance is
bought freshly.
Life insurance follows premium
accumulations from the beginning
of the policy till its maturity.
GROWTH
5. Health insurance policy life cycle
lasts for only a given calendar
year and is typically determined
by the insurer. It is not
Life insurance policy life cycle
lasts up to many years as
determined by the insurer and the
insured. The use of benefits is
availed only after the inevitable
death of the insured.
LIFE
CYCLE
6. Health insurance premiums are
typically monthly or biweekly in
nature.
Life insurance premium can be
monthly, quarterly, semi-annually or
annually in nature.
FREQUENCY
7. The term ‘maturity’ has no
significance in health insurance,
still it can be approximately
translated into the termination or
lapse of the policy which when
not be renewed, no benefits can
be availed.
The term ‘maturity’ has greater
significance in life insurance which
signifies the legitimate termination
of policy where the benefits are
ready to be utilized.
MATURITY
8. The liquid benefits of health
insurance can be termed as the
reduced healthcare costs during
the policy period.
The liquid benefits of life insurance
can be termed as the increased
capital after the policy period.
CONSUMMATION
9. For a short term or an immediate
perspective, health insurance is
instrumental with or without life
insurance.
For a long term or a later
perspective, life insurance is
instrumental along with the
concurrent health insurance.
PRIORITY
10. Health insurance is mandated by
the federal government and
could lead to monetary fines, if
not owned by individuals.
Life insurance is a personal choice
by individuals with no government
mandate, other than encouraging
life insurance.
MANDATE