When it comes to securing your future, insurance is non-negotiable. But with so many products in the market, how do you know what’s right for you?
Two of the most important types—term insurance and health insurance—serve very different purposes. One protects your family’s financial well-being if you’re no longer around, while the other protects your savings from unexpected medical expenses. Here’s how they compare—and why you might need both.
1. Purpose of Each Plan
Term Insurance
- Offers financial support to your family in case of your untimely death
- Helps repay loans and maintain your family’s lifestyle in your absence
Health Insurance
- Covers medical expenses from hospitalization, surgeries, or accidents
- Protects your savings from being drained due to treatment costs.
2. Coverage & Benefits
Term Insurance
- Provides high coverage at a low premium
- Offers pure life protection with no maturity benefits
Health Insurance
- Covers hospital bills, diagnostics, pre/post-hospitalization, and more
- Some plans include wellness benefits and cashless treatments.
3. Payout Conditions
Term Insurance:
- Lump sum payout is made only if the policyholder passes away during the policy term
- Health Insurance: Payouts are made whenever you make a valid medical claim during the policy year
4. Who Needs What?
Term Insurance:
- Primary breadwinners
- Individuals with dependents
- Those with financial liabilities like loans
Health Insurance:
- Everyone—regardless of age or income
- Especially critical in today’s environment of rising medical costs
BTW IMF Can Help You Decide
Choosing between term insurance vs health insurance—or deciding to get both—depends on your lifestyle, risk factors, and financial responsibilities. At BTW Financial Services & IMF Pvt. Ltd., our experts help you:
- Understand your coverage needs
- Choose the right insurer and plan
- Navigate claims and renewals with ease
Secure your life. Protect your health. Choose wisely.
FAQ’s
1. What is the difference between term insurance vs health insurance?
Term insurance provides financial protection to your family if you pass away, while health insurance covers medical expenses during your lifetime.
2. Can I have both term and health insurance?
Yes. In fact, combining them ensures comprehensive financial and health protection.
3. Is term insurance expensive?
No. Term insurance offers high coverage at comparatively low premiums.
4. Why is health insurance important if I’m young and healthy?
Medical emergencies are unpredictable, and early coverage ensures lower premiums and continuity of benefits.
5. How do I choose the right insurance?
Speak with an expert who can assess your needs and recommend the right plans for your lifestyle and financial goals.
