Only your health insurance will provide cover for illness and accidents
Health insurance is specifically designed to cover your expenses when you get medical treatment. So, in case of the need for a surgery or accident you do not have to dip into your savings to pay your medical bills. Your health insurance plan will come in handy and cover all costs. On the other hand, term insurance plans in India provide you cover for a certain duration of time. In case the insured dies within that time, then the nominees receive the promised amount. But if the insured outlives the time duration then, however, there is no maturity benefits.
Health insurers have extended the benefits of health insurance plan to cover treatment taken at home under medical supervision, attendant allowance, maternity cover, periodic health check-up after a couple of claim free years, dental treatments. It also covers alternative treatments like Ayurvedic, homeopathy and yoga and gives critical illness cover for life-threatening diseases.
In a debate on life insurance vs health insurance, it is difficult to draw a definite conclusion because both serve different purposes. Life insurance is meant for the family of the deceased – to help them maintain their lifestyle and achieve their goals, while health insurance covers expenses of your illness. In case of life insurance, you can get back the money invested on the maturity of the policy. In case of health insurance, the money is reimbursed only in case of accident or illness.
Term insurance policies in India do not take care of accident or illness related expenses, so in a debate about term insurance vs health insurance, the latter wins hands down. Term insurance is like life insurance but for a definite time period. If the insured dies then the nominees— in most cases family members get the sum assured. But a person does not die everyday but he or his family members may fall sick often.
Health insurance is an absolute must for every family because there could be a situation where one family member falls sick and another meets with an accident – in such a case term insurance does not help. Health insurance in the form of a family floater plan or an individual mediclaim helps you out in these situations.
The premium paid of a health insurance is usually tax-free under section 80D of healthcare charge and under 80C for the premium paid towards the market-linked fund. Maturity value is also tax-free subject to fulfillment of certain conditions. These are the tax return benefits of a health insurance.
Buy a health insurance which covers you and your family and keeps you free of worries relating to expenses incurred due to medical treatments. You should remember that term insurance does not provide cover against illness and accidents.