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How to distinguish between health insurance and life insurance?

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How to distinguish between health insurance and life insurance?

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distinguish between health insurance and life insurance

Life insurance and Health insurance are widely used. You can use insurance to protect the future of children and parents. If you have a need, find out these two types of insurance in the article below.

When thinking about the future, preparing for family or yourself, many people worry about the health risks that may occur and affect future plans. At this time, insurance is a financial product that protects against these possible risks. However, there are many types of insurance in the market that are capable of protecting people. There is insurance that can be used to cover all incurred costs related to the health of the insured people, such as health insurance, an example is Bao Viet health insurance. Or there is insurance that will be used as a financial tool to invest in the future of beneficiaries such as life insurance. These types of insurance have some similarities. However, we need to have a more detailed look at the differences between these two types of insurance.

What is health insurance and life insurance?

To easily distinguish between these two types of insurance, you need to understand the concepts of life insurance and health insurance.

What is health insurance?

In fact, health insurance is a type of non-life insurance and is mostly used for the elderly and children. The benefits of the insured people can include full or partial support of health care costs. For example,  risks related to accidents or illnesses, hospital fees, treatment costs… You will pay periodically, usually 1 year to buy health insurance. And, this fee is not accumulated, invested as life insurance. Each year, your premium will increase if you have used a lot of benefits. 

What is life insurance?

Life insurance is a form of long-term investment, a form of insurance against unexpected risks, savings and investment for the future if there is no risk to the insured.

What are the differences between life insurance and health insurance?

This is a companion product, the buyer will pay the premium periodically for a long time. In order to prepare yourself for health risks with life insurance, you can buy additional incurable health insurance if the illness is your biggest concern, or you can buy any insurance product. With life insurance, in case the insured people have health risks and is no longer able to work and financially support the family, you will receive insurance benefits.

Insurance benefits can be a huge amount of money to support the insured people and their families. The insured people and their families will have a good standard of living. Health supplementary products in life insurance may include assistance with payment of hospital fees, surgery costs, and medical expenses. These additional terms are quite similar to health insurance benefits. Therefore, perhaps quite a lot of people have been unable to distinguish between life insurance and health insurance.

Health insurance is one of the types of non-life insurance

Distinguish between life insurance and health insurance

The similarities and differences below will help you easily distinguish the benefits and disadvantages of these insurance packages.

The basic similarities between life insurance and health insurance

We can easily see the similarities between life insurance and health insurance. Eg:

– Both types of insurance use premiums to maintain benefits.

– Both types of insurance provide health benefits for the insured people 

– Both types of insurance are issued by a national agency.

Although they are two different types of insurance but aimed at the safety of health

– Both types of insurance are widely used and targeted at young children and old people 

– Both types of insurance are paid for the beneficiary and the benefit of the beneficiary is central.

In addition, in the process of paying and using these two types of insurance, there are many other similarities that make you easily misunderstand. Therefore, we will share with you the basic differences between life insurance and health insurance below.

The basic differences between life insurance and health insurance

In general, on the market today there are 2 types of insurance tht parents are interested in. However, many people are often confused about these two types. These are life insurance and health insurance (non-life). These two types of insurance have similarities but also very specific differences.

There are quite a few basic differences between life insurance and health insurance such as validity period, cost of insurance…

  • Life insurance is a type of insurance to prevent risks that may affect human life and transfer the sum insured to the beneficiary if the policyholder died or to the insured people when the policy expires. In contrast, health insurance only serves to pay for the medical services the participant used and only pay for the amount specified in the previous contract.
  • For life insurance, both life and death benefits are provided to the policyholder. Meanwhile, health insurance only provides treatment benefits and medical benefits to the owner if they get sick or have an accident.
  • Life insurance premiums may be paid in a lump sum or periodically, usually quarterly. The health insurance premium is paid in a lump sum for the whole period.
  • For life insurance, the sum of money will be paid to the beneficiary in case the insured people died or to the policyholder when the policy is due. However, in the case of health insurance, the owner has absolutely no money back even though he or she did not use any medical services during the time of enrollment.

You can easily distinguish these two types of insurance thanks to our sharing

  • The validity of a life insurance policy usually lasts from 10 to 20 years, while health insurance has only 1 year of validity.

Currently, these two types of insurance are used by many people to ensure our health as well as our future. There are many people who cannot even distinguish between life insurance and health insurance. So, each person needs to distinguish the benefits and how to use these two types of insurance to ensure maximum benefits for themselves. 

In case you want to buy one of these but still not clear, you can visit the website Ibaohiem.vn to get advice from the counselor. I hope the above share will help you. If you have any questions about these two types of insurance, you can contact us for a timely answer!

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