Term Insurance vs Health Insurance | Difference Between Term & Health Insurance |PNB MetLife

When it comes to safeguarding your loved ones' financial interests, insurance can be one of the best instruments to invest in. With a variety of products and features, the market is full of offerings in life insurance, health insurance, term insurance, and more. However, a common confusion lies in the minds of most buyers – the difference between term insurance and health insurance.

Read on to know which one is best suited to your needs as it helps to understand each's unique features.

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What is health insurance?

The sole purpose of a health insurance plan is to cover the medical costs of the policyholder. So, with a health insurance policy, you can cover the costs of hospitalization, doctor’s fees, medicines, regular checkups, etc. Such plans do not offer any death or maturity benefit and are designed to cover healthcare expenses strictly.

What is term insurance?

A term insurance plan offers a death benefit in the unfortunate event of the insured person’s demise. Hence, with a term plan, your family can carry on with their life and cover their routine expenses, such as food, education, loans repayments, etc. Such plans provide you with the sum assured in the case of the policyholder’s death.

What is the difference between health insurance and term insurance?

Here are some things to note:

Point of difference	Health insurance	Term insurance
Number of settlements	A health insurance plan offers coverage for any number of times that you need to make a claim. This implies that you can make multiple claims during the term of your policy, depending on the medical expenses you bear.	A term insurance plan only offers a one-time settlement to the nominee in the form of a death benefit.
Cost of premium	The cost of premium can differ for the kind of coverage you opt for. However, health insurance plans generally cost higher than term plans.	Term insurance is considered to be the most inexpensive form of life insurance. You can get a high sum assured at a low premium, depending on the age at which you buy a plan.
Nominee in the plan	In a health insurance policy, the policyholder avails the benefits of the insurance reimbursements. However, if the policyholder dies during a medical procedure, the reimbursement will be paid to the appointed nominee.	In the case of term insurance, the nominee is a loved one like a spouse or a child. The claim is only settled at the time of death and not any other time during the term of the policy.

Which one should you choose?

The role of each of these plans is unique. Therefore, it is hard to pick one. Financial experts suggest that having both health and term insurance is crucial. While the former will keep you protected against the costs of illnesses, the latter will protect your family in your absence. Some people also buy a term insurance plan along with a critical illness rider to gain twin benefits.

To sum it up

Knowing the difference between term plan and health insurance can help you choose the right product at the right time in your life. No matter which plans you pick, choosing a trustworthy insurer like PNB MetLife can offer you increased security. Their term and health insurance plans can provide you with umpteen benefits, keeping you and your loved ones financially protected against various odds.

Visit PNB MetLife to know more about term plan, long term savings, retirement plan and life insurance.

Disclaimer:

The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
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