Health is an important aspect of a person’s life, but securing your loved one’s life after you are gone is also a crucial decision. No matter how much we might earn in a lifetime it will never be enough to cover the costs of medical emergencies along with all the requirements of daily life. This is the reason why today many are opting for life insurance and health insurance plans that can cover a person’s life completely.
But, why just opt for one insurance plan when you can have multiple plans. It is good to have a comprehensive health plan but owning life insurance along with it gives you and your family more benefits. Irrespective of what your insurer might tell you, one of the multiple insurances plans benefits is that it can reflect well on your investment portfolio.
So, let’s go ahead and compare health insurance v/s life insurance plans and see the benefits that they can offer when combined together.
Health Insurance v/s Life insurance
As we all know, health and life insurance policies both work in different ways. Health insurance, as the name suggests, offers comprehensive cover towards a person’s medical costs like hospitalization, costs of medicines, illnesses, and treating illnesses. The payout is subject to the sum assured. This type of insurance, however, does not cover any payout on the death of the insured.
On the other hand, life insurance offers a person life cover and takes care of the family’s monetary needs after the insured’s death. Additionally, this type of insurance also helps a person save for his/her retirement and his/her children’s future.
The more insurance policies you have, the greater the tax benefits you are going to have. Health insurance allows an insurer to claim a deduction of up to Rs. 25000 on the premiums that are paid under Section 80D. Furthermore, you can also get a tax reduction on preventive health checkups every year.
In the case of life insurance, tax deductions are applicable under Section 80C on the premiums paid annually. Under the Income Tax Act 1961, a person can be exempted up to 1.5 lakhs annually.
Now, let’s see the benefits that a person can obtain when both are combined.
Why we need both?
Now that we have seen both the insurance policies are beneficial to a person in their own way, an individual must make it a point to include both of them in their investment portfolios. With a family to look after and an uncertain future ahead of us, a life cover is an absolute must so that he/she can live worry-free when it comes to taking care of his/her loved ones after his/her death.
Similarly, health insurance is important too. The financial burden that befalls the family members when someone is ill at is equally tough to deal with. Having a health policy ensures that all medical needs and expenses are taken care of with ease.
Combining life and health insurance plans is a wise decision that anyone can make. The only care that one must take is to ensure that all terms and conditions, including exclusions, are read properly and understood before signing the papers. The rest is just a smooth journey ahead with the right life insurance and health insurance plans.