What is the difference between Term, Life and Health Insurance? Know Here
There are many insurance companies in the market that provide different types of insurance. Unforeseen losses in the future can be avoided or reduced through insurance. In the future, any untoward incident can be dealt with through insurance. Life insurance and health insurance are taken for this. At the same time, good returns are also received when the insurance matures. Apart from this, there is also a tax benefit.
You must have heard the name of term, life and health insurance, but do you know the difference between these three? If not, today we are going to tell you in this story what is the difference between term, life and health insurance. Although all these are beneficial but keeping in mind your needs, insurance should be done.
Life Insurance
Life insurance refers to the insurance of a person alive. Under this, people insure life. Life insurance of a person is kept, and if that person dies at any time, then in the same situation, the dependents of the deceased person get compensation. On the other hand, if the life insurance matures and the person who is insured is alive, then in this situation the maturity return is much better.
Health Insurance
Health insurance is needed when an economic crisis arises for treatment for a disease. Presently, treatment of any disease proves to be very expensive. In such a situation, health insurance is very useful to pay the expenses incurred for treatment. If a person becomes ill and has health insurance, then the insurance company will bear the cost of his treatment. However, the cost of spending on any disease depends on the health insurance policy.
Term insurance
Term insurance policy is slightly different from life insurance. The biggest difference is found in the term insurance and traditional life insurance in relation to the death benefit. If a person who has taken term insurance dies during the term period, then his benefit is given. However, he gets both death and maturity benefits after the death of a person who has done life insurance. At the same time, the amount of death benefit under term insurance is more than the maturity benefit available in life insurance.
At the same time, in term insurance, like life insurance, maturity returns are not available. If a person who has taken term insurance dies, his family gets a benefit in such a situation. On the other hand, if a person wants to pay a lower premium and only wants death risk cover, then a term insurance plan is beneficial for him. If a person aims to invest with life cover, then he can take the option of life insurance. With this, termination of term insurance policy is much easier than life insurance policy.
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