Difference Between Health Insurance And Term Insurance

1. Difference Between Health Insurance And Term Insurance Knowing the difference between health insurance and term insurance is important before buying one of them. Especially, if it is your first time buying insurance and don’t know much about them. Both insurance plans provide different criteria. You must keenly examine both insurance plans and then compare them with your goal. Both insurance plans ensure you financial support during uncertain times but for different situations. After reading this article, you will understand the concept and difference between health insurance and term insurance plans. Health insurance is a policy where you pay premiums to the insurance company against any medical expense in the future. Because of this plan, the insured person does not need to worry about arranging the funds for a medical emergency. The insurance company will cover the hospitalization and medical bills of the insured person. Term insurance is the policy for a fixed period wherein upon the sudden demise of the insured person – during the policy tenure – the company pays the assured sum to the nominee. This plan gives financial security to the policyholder’s family in the absence of him/her. Understanding the difference between health insurance and term insurance will give you a clear picture because both plans serve different purposes, premiums, and scopes. The table shown below will tell the differences between both insurance plans on various parameters. Know more about Health Insurance and Term Insurance