Insurance is an arrangement in which the insurer (often the insurance company) agrees to mitigate you in the event of financial loss or damages.
Insurance is in different forms and varying stages. Most people believe insurance is expensive and comes with many choices. This belief is biased and unfounded. Insurance is quite very affordable and the many options are provided so clients can choose the policy most applicable to them.
While there are many forms of insurance, two insurance policies stand out and they are life insurance and medical insurance. A look at the opinions of customers on reviewsbird.co.uk and you know these two forms are very common. Most times, an individual is torn between going for life insurance or medical insurance. Although both are essential, we can do a cursory assessment of them if you are in such a decision-making situation.
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Similarities Between Life and Medical Insurance
Both insurance policies run on premiums. Premium is the amount you agree to pay insurance companies to be mitigated against financial loss. It can be monthly or yearly. Several factors are put into consideration into a premium.
If there are premiums, there would be claims. Both policies provide claims. Claims are simply returns on your premiums. In other words, your premium serves as a liability until they turn an investment return through claims.
· Risk Management
Life insurance is about life-threatening risks and health insurance is about health-related risks. No doubt, both insurance policies are geared at managing life risks for you.
Differences Between Life and Medical Insurance
· Main Categories
There are two categories of life insurance. If you are not operating a whole life insurance contract, then you would be operating a universal life insurance contract. Medical insurance, on the other hand, is divided into individual health insurance, family floater, and senior citizens.
· Core Benefits
Life insurance benefit is claimed post-existence. This means claims mature after death. A sum of benefits decided by the policy and premiums is paid as a death benefit to the nominee of the insured. Medical insurance mitigates against the treatment cost for illnesses and other medical conditions. These costs are decided by the type of policy and premiums.
· Policy Purpose
Both policies are unique and peculiar to their purpose. While life insurance will keep your family and the legacy about you running during your absence, medical insurance will reimburse you for expenses or other financial loss due to illnesses and other medical conditions to prevent death.
Which Policy is More Preferable?
Although the two policies are unique, they are also similar. The question about preference is really one of preference. You are advised to go for life insurance if you are afraid of your inheritance, debt, and financial security for your family. In the same vein, medical insurance should be the go-to policy for everyone after their health and safety.
Choosing life insurance over medical insurance is ignorant at most if your preference does not align with the policy – the same with going for medical insurance instead of life insurance. In the end, what matters is your preference and how it aligns with the policy.