Health Insurance and Life Insurance both seem to be the same considering they both cover the insured person against an unforeseen and unfortunate event. However, they are completely different by definition and the type of coverage they offer.
is a contract between the insured person and Insurance Company. According to this contract, the Insurance Company agrees to pay for the medical and hospitalization expenses of the insured and the insured person agrees to pay a fixed premium.
Pay attention that the coverage is against the risk of hospitalization and medical expenses.
On a different note altogether, Life Insurance covers the insured against the risk of death. The Insurance Company agrees to pay the insured person’s nominee a fixed amount if the insured person dies.
The coverage here is against the risk of death. Hence, your nominee receives the payment.
Many Insurance companies offer competitive rates for both Health Insurance and life Insurance along with enticing benefits. Hence, ensure you do your research before you dive in to the insurance pool.