The Difference Between Health Insurance and Life Insurance
Introduction
There are lots of various kinds of personal insurances available, and while it may be simple to tell apart your cover for your home, vehicle, and contents, determining the difference between the other forms of personal cover can be confusing.
One of the questions that is asked most often is what is the difference between Health insurance and Life insurance? There are lots of Kiwis that think they’re the same, but in reality, there are quite a number of key differences to consider. At Fintrade, we care about ensuring that you have full information in order to make truly informed decisions on your insurance policy, so we have created this guide to inform you of the most important differences.
Health Insurance: Priority Care When You Need I
In New Zealand, we have a large public healthcare system that puts those with life-threatening injuries and illnesses first. If you don’t have a life-threatening illness or injury, however, you will probably be put on a waiting list. That’s where health cover comes in handy.
Medical insurance enables you to have private healthcare, skipping the public system waiting lists so that you can be treated with priority. The health insurance coverage is decided based on your age, smoking status, and pre-existing health conditions.
Main Advantages of Health Insurance:
– Priority Care: Private healthcare access means quicker treatment and no long wait lists
– Guard Your Well-being: Improve your life quality by recovering in a shorter time
– Don’t Take Time Off: Reduce recovery and treatment time, so you can recover in the shortest time possible and get back to work sooner
Most people feel they don’t require health cover because ACC will look after them, but consider that ACC merely covers one-off accidents and not illness or conditions. Depending on the public healthcare system usually entails lengthy waiting lists and restricted access to necessary medicines – something which will be the last thing on your mind should you become gravely ill.
Life Insurance: Securing Your Family's Future
Life cover is not like health insurance. It’s intended to support your loved ones and dependents in a financial way if you die or are diagnosed with a terminal illness. Life protection provides a payment to your loved ones – usually the “policy owner” – if you die or are diagnosed with a terminal illness with fewer than 12 months to live.
The amount insured is usually determined by important factors like your age, health, occupation, and pre-existing medical conditions. This kind of insurance cover is especially vital if you have dependents who are dependent on your income.
Important Benefits of Life Insurance:
– Secure Your Children’s Home: Continue to pay mortgage or rent so your children won’t have to fear being evicted during an already stressful period
– Peace of Mind: Be assured your family will be financially stable if you pass away
– Avoid Burdening Family: Avoid having your family bear the weight of your bills, mortgages, or loans
Your life insurance policy assists in paying for funeral costs and any living expenses your family may require once you are gone, like paying off the mortgage or saving money for your child’s education.
Life & Health Insurance Combined
Life cover and Health cover might do different things, but they complement each other perfectly to have you and your loved ones protected when it matters most. Fintrade can assist you in getting the appropriate combination of insurance coverage suitable for your personal needs and situation.
If you are curious about how Life and Health insurance can work to your advantage and that of your family, please contact our friendly staff to arrange a free, no-obligation consultation. We’re here to assist you in making fully informed decisions so you can realize your financial objectives and wellness.