- Purpose:- Covers your life
- Affordability:- Least Expensive
- Tax Benefits:- Policyholders can avail tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the critical illness benefit also qualifies for a deduction under Section 80D.
- Suitable for:- Those who have a mortgage or other debts, dependents including spouse, child etc.
- Term insurance
- Endowment plans
- Unit linked insurance plans
- Pension Plans
- Money-Back Plans
In case of insured’s death, policyholders family will get the insured amount. This insurance is also known as term life insurance. The policy benefits is passed on to the nominee. Policyholder’s family can use this money to maintain their standard of living and can easily fulfill their all financial commitments. But, this policy doesn’t offer any benefits in case of survival of the insured during the policy span. However, policyholder can avail extra optional benefits such as disability, accidental death and critical illness.
- Purpose:- Covers the cost incurred when insured is hospitalized or expenses towards treating illnesses.
- Affordability:- Expensive as compared to life insurance
- Tax Benefits:- Tax exemption for paying the premium under Section 80D of the Insurance Act.
- Suitable for:- All
- Individual health plans
- Family floater policy
- Surgery and critical illness policy
- Pre-existing disease cover
- Preventive healthcare
- Senior citizen health insurance
Usually, these healthcare plans do not cover death benefit. A person who is not insured with health insurance may experience financial burden in case of critical illness. Hence, buy the best mediclaim policy before its too late. It will take care of your medical expenses during your rough time. It is better if you select a policy based on various factors such as coverage amount, cashless facility and list of network hospitals.
Both these policies are essential for all especially for a breadwinner even if they fulfill different purposes. With all the above-mentioned information, searching out which plan is best for you can be easy.
|Life Insurance||Health Insurance|
|Purpose||Covers your life||Covers the cost incurred when insured is hospitalized or expenses towards treating illnesses.|
|Affordability||Least Expensive||Expensive as compared to life insurance|
|Tax Benefits||Policyholders can avail tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Additionally, the premiums paid for the critical illness benefit also qualifies for a deduction under Section 80D.||Tax exemption for paying the premium under Section 80D of the Insurance Act.|
|Suitable for||Those who have a mortgage or other debts, dependents including spouse, child etc.||All|