The Difference Between Life & Health Insurance
Health Insurance
There are a number of different types
of the health insurance, quite a few of which
we will be discussing below.
Short Term Health Insurance
Short term health insurance refers to an insurance
policy that offers temporary coverage, usually
lasting from one to six months. Moreover, there
are some insurance companies that permit the
client to renew his/her insurance policy once
annually. This does not, however, apply to a
period of more than one year. It would be also
be noteworthy to here consider that short term
health insurance is especially suitable for
those who are jobless or part time workers.
This policy coverage is normally a comparable
or similar plan and typically includes charges
for various hospital services, diagnostic tests
and prescription drugs. It does not, however,
cover maternity costs since the course of pregnancy
does not fall under the category of a short
term condition.
Catastrophic Health Insurance
The aim of this insurance policy is primarily
to pay major hospital and medical expenses;
it is essential to keep in mind that it does
not cover routine visits to doctors. It covers
treatment in an intensive care unit (ICU) for
10 days and is especially suitable for young
adults who are self employed or do not have
coverage through their employer.
Traditional Health
Insurance
This policy involves the payment of a certain
amount of money for your health. The insurance
company subsequently pays majority of the bills.
Preventive care services like yearly check-ups
and pelvic exams, however, are not covered within
this policy. The points of service of this plan
are:
- This plan is a little one
- This plan includes arrangements for lower
fees with a network of hospitals
- It gives policyholders a financial incentive
to say within the net work.
- Policyholder gets to choose a doctor form
the plan’s network various health maintenance
organization.
Life Insurance
Turning to life insurance, it would be primarily
relevant to acknowledge that this is a policy
that pays beneficiaries a specified amount upon
the event of the death of the insured individual.
It provides cash to your family upon the death
of the insured person. And while there are many
kinds of the life insurance policies, the most
famous kinds are whole life insurance and term
life insurance.
Whole Life Insurance
Whole life insurance is life time protection
as far as the client continues to pay premiums;
the policy becomes invalid in the case of the
client not paying at the decided time. And due
to the fact that it protects the insured person
for his/her whole life if he/she pays premium,
this is also known as traditional or permanent
life policy. In this policy you get life insurance
as well as savings. If the company is doing
well, moreover, the premiums are paid back to
the insured person with the inclusion of a bonus.
Term Life Insurance
Term life insurance, on the other hand, provides
protection only for a particular period of time.
However, it can be renewed when your term is
over. Although term life insurance is basically
a low-cost form of life insurance it is certainly
not a form of life time insurance. Term life
insurance only for a certain period of time,
and if the policyholder dies during the term
of insurance he/she receives the death benefit.
In the case of the insured person dying after
the policy expires, however, no benefit is paid.
This type of the life insurance is best when
coverage is only needed for a term or certain
period of time. The insured person will be offered
an insurance premium [monthly or annually] for
the amount of life insurance. It would be worthy
of observation to here consider that there are
number of factors that companies find crucial
to consider before signing up a client for a
particular insurance policy. This falls under
what can be termed as the risk profile of an
individual, and while different firms include
different factors, the most commonly included
are details of such factors as:
- Age
- Gender
- Weight
- Personal and family health histories
- Habit (smoking/drinking)
- Marital status
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