Benefits of Having Both Life and Health Insurance Plans

Posted on: Sep 22, 2023 | | Written by:

Benefits of Having Both Life and Health Insurance Plans

Published on September 22, 2023. EST READ TIME: 3 minutes

Have you ever felt insurance policies are like puzzle pieces you need to put together? Well, you are not alone, but there is no need to scratch your head anymore when deciding between health insurance and life insurance. For that matter, they are not like some rival companies that you have to pick one over the other. In fact, they are both on the same side — your side. Health Insurance and Life Insurance are like peanut butter and jelly, a perfect combo that can save the day with the financial assistance they provide. So, let’s unwrap this duo and see why having both is a wise decision.

Why Do People Need Life Insurance?

Life insurance secures a family financially when the family’s only earning member departs from this world. There are a multitude of reasons why investing in life insurance can be helpful. So, here are some benefits of life insurance —

1. Financial security

This is the most important objective of a life insurance policy. It offers much-needed financial security to your family when you are not around. If you are the sole breadwinner of the family, life insurance will ensure the surviving dependents do not go through any financial crisis in your absence.

2. Achieve long-term goals

The savings accumulated over the years can help you achieve your long-term financial goals, such as buying your dream home or starting a business. Investing in small amounts every month will help build a corpus fund.

3. Retirement planning

When you invest in a life insurance plan for a longer duration, the savings will ensure you live a comfortable life post-retirement.

4. Tax benefits

Under Section 80C of the Income Tax Act, you can claim a tax deduction on the premium paid for life insurance plans. Death benefit claims are tax-free under Section 10(10D).

5. Pay off debts

After your demise, the insurance payout can be used to pay off any outstanding debts such as mortgages, loans, or credit card bills. This will help your family members deal with financial obligations.

6. Replace loss of income

The payout will help the surviving members compensate for the loss of income by making sure their everyday expenses are covered, and they are not left in the lurch.

7. Keeps the business going

If you run your own business, the life insurance payout can help in the smooth running of your business or repaying any debts after your death. It will not impact the business operations if something happens to you.

8. Peace of mind

When you know your loved ones will be financially secure when you are not around provides peace of mind.

Why Do People Need Health Insurance?

Health insurance plans support you and your family financially against unexpected medical expenses. With the rise in medical expenses as well as lifestyle diseases, a single hospitalisation can disturb your budget, and having individual health insurance or family health insurance can help you sail through difficult times while keeping your finances safe. Here are the many benefits of health insurance which make it a must-have for everyone —

• Health insurance is a necessity today to beat medical inflation. With advancements in medical science and technology, there’s no doubt that many diseases are being cured. However, many of the procedures, treatments, and tests are also becoming very expensive. If you don’t have health insurance, the high costs can become overwhelming.

• With a wide network of hospitals, you can avail of cashless hospitalisation if you get treated in any of the network hospitals of the insurance provider pan India.

• Since health insurance will cover your medical expenses, you can have access to quality healthcare facilities and specialised treatments in any hospital of your choice where the particular treatment is available.

• Health insurance will cover expenses incurred on hospitalisation, pre- and post-hospitalisation, daycare treatments, ambulance charges, domiciliary treatment, organ donor charges, AYUSH treatments, mental healthcare, and more.

• Most health insurance plans cover preventive health check-ups, screenings, and vaccinations. This will help in early detection and timely treatment of any potential health issue.

You can claim a tax deduction on the premium paid for your health insurance policy.

The Need for Both Kinds of Insurance in Your Portfolio

Both life insurance and health insurance policies have their own benefits, and a person must have both in his/her portfolio. What’s important is both should have adequate coverage to meet the expenses in times of need. While a life insurance policy will provide financial support to family members after the policyholder leaves the world, health insurance will provide financial protection against unexpected medical expenses during your lifetime but doesn’t offer death benefits.

Conclusion

Now that you know the benefits of life insurance and also the benefits of health insurance policies, you can decide to have both or one depending on your financial condition, family needs, etc. Both types of insurance plans ensure you and your family are financially safe during the uncertainties of life and provide peace of mind.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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