Although it may be hard for some to distinguish between these two, both life and health insurance have their own benefits and differences. While life insurance has been designed to help your family reduce their financial burden in the event of your untimely death, a health insurance policy offers coverage towards the expenses related to treatment or hospitalization.
Health Insurance Policy, on the other hand, covers costs of hospitalization and expenses for other related treatments. Today, most of health insurance providers offer their policies with cashless treatment facility at network hospitals.
The core benefit of a life insurance policy is a Sum Assured (Death Benefit) that is paid to the nominee/benefit of the person (Life Assured) after his/her demise during the policy term.
The core benefit of a medical insurance policy is basically offering coverage against the treatment costs for illnesses or other medical conditions subject to a maximum coverage amount and other conditions as per the plan.
While under a health insurance policy, you can avail tax benefits Under Section 80D of the Indian Income Tax Act.
Here, it's important to keep in mind that both Life Insurance and Health Insurance are specific parts of your financial portfolio that cover different types of financial risks.
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