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Today people do not understand the difference between life insurance and health insurance. In this article I want to explain some essential differences between these two terms.
Let’s start from the health insurance. There are some types of health insurance:
- Short term health insurance. This insurance offers temporary coverage usually of one to six months. Some insurance companies permit their clients to renew the policy annually. What is the most important this type of health insurance policy is perfectly suitable for jobless and part time workers. This policy coverage normally includes charges for prescription drugs, various hospital services, and diagnostic tests. But it does not cover maternity costs.
- Catastrophic health insurance. This insurance policy is aimed at payment major medical and hospital expenses. But it does not cover common doctor visits; it covers treatment in the intensive care unit for 10 days.
- Traditional health insurance proposes the payment for your health. This policy does not cover such services as planed check-ups and pelvic exams. The coverage under this policy includes arrangements for lower fees with hospitals. Policyholder could choose the hospital and the doctor among the list proposed by the insurance company.
These are all main types of health insurance policies. And now let’s try to understand the life insurance policies.
First of all you should understand that life insurance policy is the policy under which the beneficiaries will receive money after the event of the death of the ensured person. There are a lot of types of life insurance policies, but the most widespread and famous are whole life insurance policies and term life insurance policies. Let’s examine these types of life insurance policies more detailed.
- Whole life insurance policy is a life protection and under this policy the client has to pay premiums. The policy becomes invalid in the case if the client stops paying the premiums. Also this kind of life insurance policy is known as permanent or traditional life insurance policy.
- Term life insurance provides the protection only during certain period of time. But nevertheless it could be renewed when the term is expired. Term life insurance generally is the low-cost variant of the life term insurance. If the policyholder dies during the term of insurance policy his or her beneficiaries receive the death benefits. But if the person dies in the time when the insurance policy does not work, no death benefits are paid. This policy is the best one if you need life insurance just for a certain period of time. Buying this type of life insurance the insurance agency will pay you monthly or annually insurance premiums. There are a lot of crucial factors that may influence on the signification of the policy. Among them there are age, weight, gender, health history, etc.
When you start searching for a good life insurance, you can get scared how many life insurance brokers are on the market. But number is not always about quality. Please read more about choosing good life insurance brokers on this blog which is specifying on the life insurance brokers topic only.