Life and health insurance policies protect you and your family in the event of anything that might happen along the way. While the purpose of the two policies are not the same, they are important when it comes to protecting your financial well being. In this article we will have a look at the role of life and health insurance, their importance at different life stages and a hand on tips on how to stay covered and yet spend less.
Learning about Life and Health Insurance
What is Life Insurance?
Life insurance is provided for when you die, if it were too, and it ensures that your family won’t have to suffer through financial hardship. The policy pays a lump sum, known as a death benefit, which can be used to:
Replace lost income
Pay existing off your mortgages or medical bills.
Pay for funeral expenses.
Use the money for educational funding or for retirement savings.
What is Health Insurance?
Health insurance, on the other hand, helps cover medical expenses such as:
Doctor’s visits.
Hospital stays.
Medications.
Diagnostic tests and procedures.
The coverage builds into your budget to allow for essential medical care and move toward a healthier, longer life.
Good Reasons Both Policies Need To Be Implemented
Life and health insurance cover different purposes, though, and it serves different purposes. Health insurance assures that when you need medical treatment, it won’t break the bank, no matter how much you can’t afford. With life insurance, your family is protected financially so they can continue to live the lifestyle they are used to when you’re gone.
Life and health insurance policies protect you and your family in the event of anything that might happen along the way. While the purpose of the two policies are not the same, they are important when it comes to protecting your financial well being. In this article we will have a look at the role of life and health insurance, their importance at different life stages and a hand on tips on how to stay covered and yet spend less.
Learning about Life and Health Insurance
What is Life Insurance?
Life insurance is provided for when you die, if it were too, and it ensures that your family won’t have to suffer through financial hardship. The policy pays a lump sum, known as a death benefit, which can be used to:
Replace lost income
Pay existing off your mortgages or medical bills.
Pay for funeral expenses.
Use the money for educational funding or for retirement savings.
What is Health Insurance?
Health insurance, on the other hand, helps cover medical expenses such as:
Doctor’s visits.
Hospital stays.
Medications.
Diagnostic tests and procedures.
The coverage builds into your budget to allow for essential medical care and move toward a healthier, longer life.
Good Reasons Both Policies Need To Be Implemented
Life and health insurance cover different purposes, though, and it serves different purposes. Health insurance assures that when you need medical treatment, it won’t break the bank, no matter how much you can’t afford. With life insurance, your family is protected financially so they can continue to live the lifestyle they are used to when you’re gone.
Making Insurance Affordable
Buy Only What You Need:
Identify which kind of life stage and financial obligation you are presently in and what amount of coverage you need for these two policies.
Compare Plans:
Find policies that match a good coverage to affordability. Large savings are available from online marketplaces and employer sponsored plans.
Maximize Tax Benefits:
Some of that will go towards things like health savings accounts (HSAs) and premiums for certain life insurance policies, so that will reduce your overall cost.
Bundle Policies:
“Some insurers give discounts for multiple policies, such as life, health and even auto,” Page said.
Common Questions
1. Should young adults have health insurance?
Yes. Healthy or not, health insurance protects you from excessively expensive medical emergencies and helps you get vital preventive care.
2. How about retirees and life insurance?
It depends. You may not need life insurance if you pay off your debts and your dependents become financially independent. Moreover, if you are owing great debt, then keeping the coverage may be useful.
3. Now the question arises … How much life insurance do I need?
As a rule of thumb, buy a policy for what equals 10 times your annual salary or the amount needed to cover the expenses in your family’s abscence should you be unavailable.
Conclusion
Without life and health insurance policies, there’s no financial security at any stage of life. Yes, it’s costly to maintain both policies, but customizing your coverage and looking into inexpensive alternatives is manageable. If you understand the special role that life and health insurance plays in your life, you’ll be able to maintain a state of peace of mind no matter what life throws at you and your family.
In order to truly leverage the power of preparation, which is to say life and health insurance, let’s invest in them today.
