Health and life insurance are two different kinds of protection, both of which are necessary to protect your clients' family, finances and the future. They are not alternatives but complementary to each other.
Health insurance is not a luxury but a necessity for everyone. It helps pay for medical expenses and manage your clients’ health, which enables them to avoid using personal funds or savings for medical treatment when faced with health issues.
It is important to note that health insurers do not cover everything – they only cover what is known as "preventable" costs of illness or injury, so they are not huge compared to other types of insurance coverage such as life insurance or disability income plans. Health insurance protects both individuals and families from unexpected healthcare expenses.
On the other hand, life insurance is investing in a valuable financial safety net for your clients’ family. Through it, a lump sum amount of money will be paid to whoever is designated as nominee or beneficiaries (usually spouse or children) post the policyholder’s (the life insured’s) death.
Life insurance helps replenish, to some extent, the economic value of the deceased family member and can help to pay for residual debt and other daily living expenses that would otherwise be left unpaid. It allows families to cope with the loss of income-earning members or those with economic value in present or future for the family’s well-being.
Even for those with a good amount of savings or wealth, it is an added advantage to take a life cover through life insurance plans to provide additional security to dependents and loved ones
Life insurance is a good investment your clients can get at any age, whatever their current health status. It is easy to find coverage that fits their budget and lifestyle: there are no special requirements. In case of health conditions or pre-existing risks, the insurer may rate up the premium due to higher risk, but coverage can still be provided even in most such cases.
Health insurance and life insurance serve two important purposes in your clients’ lives.
Health insurance is something everyone needs to have because it protects policyholders from the possibility of catastrophic illness or injury that could leave them unable to work or take care of themselves.
Life insurance can help protect their family's finances if they become disabled or ill while still earning a living wage.
Therefore, health and life insurance are two financial products that can help your clients with medical bills, and other expenses. Both these insurances are essential to help protect them and their families’ health, finances and future. They are not alternatives but rather two important types of coverage that can protect your clients from financial loss in the event of an accident or illness, or death.
For instance, life insurance can help pay off debts or save for your clients’ children's education if they pass away before providing a corpus for these events. Health insurance, on the other hand, can be used as a backup to pay for health costs without eating into savings set aside for other long-term goals.
This is an abridged version of an article which first appeared in The Quint.