Health insurance is a policy that provides you with financial assistance in case of any medical emergency. It includes benefits such as pre- and post-hospitalisation expenses, cashless treatment, accidental treatment cover, annual check-ups, and more.

You can buy a health insurance plan for yourself and your family to get protection against any illness or medical complications.

Term insurance is an agreement between the policyholder and the insurance company, in which the insurance company provides a death benefit to the dependents in case of the untimely demise of the policyholder.

Term insurance vs health insurance is important to understand for the right protection coverage for you and your family.

Also Read: Tax Benefits of Health Insurance Plans

When to Buy Health Insurance

Health insurance is necessary due to rising healthcare costs; having insurance ensures that you or your loved ones do not suffer financial loss in the event of a medical emergency. Moreover, the policy should be bought as early as possible to get early coverage and avoid high premiums.

When to Buy Term Insurance

Term insurance should be bought when you have financial responsibilities like a mortgage, healthcare, and childcare as a single breadwinner of the family. The plan helps you safeguard your family’s well-being at an affordable price.

Types of Term Insurance Plans

Level Term Insurance

This insurance guarantees a set amount for the chosen duration of the policy. The premium is fixed, so policy buyers benefit from a predictable cost under this insurance.

Term Insurance with Return on Premium (TROP)

Under this insurance, the premiums are returned to the policyholder if they survive the policy's term. The premiums are payable at the end of the insurance term.

Premium Refund Plan

If the insurance holder survives the policy term, the premiums are refunded to them, and this money is tax-free.

Convertible Term Insurance

This insurance plan enables flexibility to the policyholder to convert their plan into an endowment plan or a whole life insurance plan.

Increasing Term Insurance

Under this kind of insurance, the sum assured keeps increasing every year with the same premium payable by the insurance holder.

Decreasing Term Insurance

In this policy, the sum assured decreases each year and is useful if the policyholder has an ongoing mortgage or loan.

Types of Health Insurance Plans

Individual Health Insurance

As the title suggests, individual health insurance only covers one person, the policyholder. Thus, under this plan, only the policyholder is protected against medical expenses incurred, provided the premiums are paid on time.

Family Medical Insurance Plan

Under this policy, the policyholder can extend security to their family, which includes their spouse, children, and parents.

Senior Citizens’ Health Insurance

These health insurance policies are designed to offer coverage to senior citizens above 60 years of age

Critical Illness Insurance

Critical illness insurance is a plan that provides a lump-sum payout to the policyholder upon being diagnosed with specific critical illnesses, such as heart ailments and certain types of cancer.

Top-up Health Insurance

This is an additional plan that enhances the coverage limit of the base plan and comes in handy when the threshold limit of the base policy is exhausted.

Also Read: Critical Illness Insurance

Access to Quality Healthcare

Having a health insurance plan ensures that you have access to quality healthcare services such as hospitalisation, diagnostic tests, medical treatments, therapy, medications, etc, in case of a medical emergency.

Pre- and Post-Hospitalisation Benefits

A health policy provides for pre- and post-hospitalisation expenses. It includes coverage for expenses like blood tests, x-rays, and medications before hospitalisation and post-hospitalisation coverage like prescription medicines.

Annual Health Check-ups Cover

Several health insurance policies provide the benefit of getting annual health checkups. It covers all the costs of check-ups and helps you detect any critical illness early.

Tax Benefits

Purchasing a health insurance policy is not only good for your health, but your finances too. Under Section 80D of the Income Tax Act, you are eligible to claim tax deductions on policy premiums paid for yourself, your spouse or even your elderly parents.

Also Read: Health Insurance: Pre and Post-Hospitalisation Expenses

Affordable Premium

Term health insurance premiums are quite affordable and provide great value for money. For the premium paid, the policyholder is guaranteed financial security for their family or dependents in case of the insured’s unfortunate demise.

Financial Protection

The best benefit of term life insurance is that it provides financial protection to surviving family members or dependents after the insured’s demise, keeping them financially stable during difficult times.

Tax Benefits

Paying the term insurance plan premium makes you eligible for tax deductions under Section 80C of the Income Tax Act; moreover, with term insurance, the sum insured payouts are made after the policyholder’s demise. Additionally, their family may also be eligible for tax exemption under Section 10(10D) of the Income Tax Act.

Term insurance and health insurance are different policies with different benefits, add-ons, coverage ranges, and premium prices. A term insurance plan provides death benefits to the family of the policyholder in the event of untimely death during the policy period.

On the other hand, a health insurance plan provides you with financial support to get the best medical treatment when required.
Moreover, it includes benefits such as cashless hospitalisation, outpatient department (OPD) cover, emergency air ambulance cover during emergencies, and daily allowances during hospitalisation.

The wise decision would be to have both policies for protection in every situation. You can start by buying the best health insurance policy with TATA AIG, which has benefits like maternity cover, consumables cover, and worldwide cover for protection in every corner of the world.

Moreover, to buy a health insurance policy with TATA AIG, you do not even have to get any health ups. It means instant insurance in just a few clicks.

What happens after 20-year term life insurance?

If anyone buys a 20-year term life insurance policy and the policyholder dies during this duration, then the insurer will pay death benefits to the policyholder’s beneficiaries. However, if the policy period completes without any incident, then no benefit aid or coverage will be provided to policyholders.

Who is not eligible for health insurance?

People who are not eligible for health insurance include people who are above the age limit or do not meet the residency requirement needed for policy purchase.

What is the maximum age for term life?

The maximum age limit for term life insurance differs, but it usually ranges from 75 to 86.

Can we take term insurance and health insurance together?

Yes, you can buy term and health insurance together for yourself or your family. They will complement each other and provide extra financial protection.

Is Term Insurance and Life Insurance the Same?

No, term insurance and life insurance policies are not the same. Although life insurance is a broader concept, term insurance is a specific type of life insurance that falls under this category.

Term insurance vs life insurance vs health insurance which one is the best for me?

All these insurance plans have different coverage benefits and add-ons. They all provide financial support to policy buyers and their dependents during emergencies. One should consider term insurance in case they have financial responsibilities as a sole breadwinner and want to protect their loved ones. Health insurance is something that everyone should purchase to obtain coverage against medical emergencies and the associated expenses.