Life insurance provides a set amount of money if the insured person passes away, term insurance is a type of life insurance that covers you for a specific period of time and health insurance covers your routine and emergency medical care. Term life insurance providers.
Life insurance is a type of insurance policy that provides money for a person or a group of people if you pass away. You will pay an insurance company a set monthly premium and if you die while the policy is active, the company will send your beneficiaries a check. Your beneficiaries can be anyone you choose, but are usually your family members like your spouse, children or parents.
Many people get life insurance to help support their family members even after they are gone. Your policy’s benefit can be used for anything, ranging from mortgage and rent payments, funeral expenses, utilities, food and education costs.
The 2 main types of plans are term life insurance and whole life insurance. You can get a policy with coverage amounts ranging from a few hundred dollars all the way up to several million dollars. The plan type you choose and your coverage amount will depend on how much support your family will need without you around.
Term insurance, or term life insurance, is a type of life insurance plan that provides coverage for a set period of time, typically ranging from 1 year up to 30 years.
Term life insurance is both the most common and the least expensive type of life insurance plan available. Since the coverage is temporary, your premiums may be less expensive than if you bought a whole life insurance plan which covers you for your entire life.
Health insurance is very different from life insurance and term insurance. It covers your routine and emergency medical care. Depending on your plan’s benefits, you may have coverage for services such as doctor’s visits, surgical care, recovery care, prescription drugs and physical therapy. If you have a health insurance plan, you may have to pay certain costs to get medical care, such as premiums, deductibles, copayments and coinsurance.
Some people have health insurance through their employer whereas others buy plans on state or government marketplaces like Healthcare.gov.
You can learn more about life insurance plans, including term life insurance, onLifeInsurance.org.
Term insurance assures paying sum of money in the event of death of life assured. It covers for the specified period and has lowest possible premiums among all insurance plans. In such plans you can select your policy term as per your age at entry in the policy and payments of premium are fixed for the entire policy term. In case of death of the life assured, your dependents will get amount specified in the term life insurance agreement. In case of survival till the end of the policy term no benefits will be paid. You can customise term life insurance with various options as mentioned below –
Lump Sum on death plus monthly income for specified period of time
Lump Sum on death plus increasing monthly income for specified period of time
Lump Sum on death plus monthly income payout based on age of child
Other form of life insurance is endowment plan, where insurance coverage is less but in case of survival it offers lump sum payout at the end of policy term. Sum products are combination of savings and protection
Health Insurance is the medical insurance provided to you by an insurance company, wherein it reimburses the medical expenses incurred in case of valid hospitalisation or provide fixed benefits in case of hospitalisation, critical illnesses etc.
If opportunities don’t knock twice, financial contingencies don’t knock even once. The sure-fire way to ensure your financial future is neutralizing the risk against all the possible eventualities.
You must be wondering how to do that?
Well, it’s simple. You can buy an insurance plan that fulfills your financial expectations so that the financial future of you and your family is safeguarded. Life is very uncertain. One moment you are living and breathing but you never know when you’ll be gone.
If you pass away and you leave a family behind, you would want them to live a happy and dignified life won’t you?
This is where insurance comes in to picture. You ought to buy a health insurance plan and a life insurance plan. It ensures as long as you live, no financial emergency will be converted into a financial crisis. Even after you are gone, it will make sure that your family doesn’t have to face any financial crunch.
Before you finalize any plan, here are the basics of term insurance, life insurance and health insurance that you must know.
Life Insurance- It is designed to offer financial protection to the insured’s family in case he passes away. It offers a pre-decided lump sum amount as the death benefit.
Health Insurance- It is designed to offer financial protection to the insured against incurred medical expenses.
Term Insurance- It is designed to offer financial protection to the insured for a pre-decided term. If he/she passes away during that period, his/her family gets the death benefit. If he survives the policy period, he/she gets nothing.
Now that you know the difference between term insurance, life insurance and health insurance you should be able to make an informed insurance decision.
Cost of insurance life insurance
Before you zero in on a plan, make sure you compare various plans online.
First and foremost, get this into your head—insurance is a term which offers plans under it that are designed to assist you with unforeseen events.
Now life insurance is an umbrella term that has many plans for it. The main aim of this is to insure your life and in case if you happen to pass away, your nominee receives a death benefit.
Within this umbrella, the most popular and simplest one is term insurance. You choose a plan, set the sum assured, and pay the premium. That’s it. If you pass away during the policy period, your nominee gets the death benefit. If not, the policy continues as usual and sees a natural end.
Health insurance, on the other hand, is a bit different. It’s a general insurance policy designed to cover all hospitalization expenses. So, if you were to fall ill and require surgery, the policy will cover it unless it is not covered under the policy document. And yes, you can avail cashless treatment too if the hospital you’re admitted into falls into the network list of the insurance policy.
I’ve got a term plan from Aegon Life, you should too. Nobody speaks life insurance better than them.