Health insurance and life insurance aren’t the same things. Health insurance is meant to cover your medical bills and expenses while you are alive. Having medical insurance in some places, like the United States, is important when it comes to securing medical care and treatment. In other countries, having health insurance on top of public insurances offered by that nation can mean more options for care. Life insurance, on the other hand, does not cover ongoing medical bills and expenses for a sick, living person. Instead, it is meant to help the surviving family members with debt and bills after that person passes away. For this reason, it’s important to have both. To learn why you need life insurance even if you already have medical insurance, read on.
Life Insurance Basics
A good life insurance policy can be critical to your family’s ability to survive financially in your absence. Life insurance policies come with a death benefit for next of kin and any other designated beneficiaries. They can mean payments for educational funds for minor children and more, depending on your level of coverage and add-ons. It’s important to call for a life insurance quote and speak to a licensed life insurance agent to find out what type of life insurance you qualify for if you’re in the position of supporting a family. Doing so will mean the difference between struggling and the ability to grieve without financial worries for your family should something happen, or if you should die unexpectedly.
Life insurance policies can be used as tools to pay off big medical bills, too. If you have a terminal illness, for example, you can sell your policy for a lump sum payment that can go toward covering expenses or mean the difference between that last trip with your family or not.
Health Insurance Basics
Medical insurance is different from life insurance in that its purpose is to help pay for ongoing health care needs and medical services while you’re living. Many people make the mistake of assuming all health-related insurance policies are the same. In reality, the difference between Medicare and private health insurance, for example, is huge. In the United States, Medicare is for senior citizens or those with disabilities but only covers eighty percent of medical expenses. Private insurance, on the other hand, can cover up to 100 percent of medical services and expenses, depending on the plan.
Whether you have traditional Medicare, Medicaid, or a combination of private health insurance plans and alternative co-insurance coverage, your health coverage won’t pay out lump sums or death benefits like your life insurance after your passing. It’s meant to be used while you’re alive or to pay for expenses from your health care while living.
Why Coverage Matters
The bottom line is that you need coverage to protect your health and family and how you structure your plans is a personal decision. Take a look at your finances, your risks, your responsibilities, and consider calling insurance agents to see what coverages might work best for you. A combination of insurance plans will put you in the best position to protect your finances and family now and in the future.
At the end of the day, it’s important not to confuse health insurance with life insurance. Both have their own specific purposes. For the ultimate peace of mind, it’s a great idea to carry both health and life insurance. Before signing up for either health insurance or life insurance, do what you can to research your options. Talk to a licensed insurance agent or someone who will be able to help you determine the right coverage and plans for you and your situation.