Life and health insurance are two different products but both are designed to provide financial protection to the insured in the event of the unforeseen event of untimely death or illness. Life Insurance is often used as a tool to provide insurance coverage through products catering to various needs of the people at different stages of life. In case of maturity of the policy, the policyholder himself gets the benefit of the policies and utilizes the money to fulfil his financial requirements. In case of untimely demise of the life assured, the family gets the proceeds of the policy for taking care of the finances of the family for fulfilling those needs, for which the policy was taken

As we all know, treatment in hospitals is becoming very costly and in the absence of health insurance, it becomes difficult for the family to provide the best treatment to the family member who has fallen sick and requires treatment. So in order to take care of this contingency health insurance becomes a necessity for each and every individual. Many organisations buy Group health insurance coverage for their employees. Some individuals also buy it themselves, but as it is the penetration of health insurance in India is very low

Life Insurance and health insurance fulfil two different needs of the person and family separately. Health insurance covers the cost associated with treatment of policyholder in case of a health emergency while life insurance covers the risk of life and in the event of demise of policy holder provides financial support to the family. There are some life insurance policies which fulfil the needs of wealth creation ,pension and critical illnesses also. Following are the differences between life and health insurance based on various parameters.

Following benefits are available in life insurance

• Sum Assured is paid to the nominee in case of untimely demise of the earning insured member of the family during the currency of the policy and also as per the terms and conditions of the policy. In case of death by accident, accident benefit is also payable to the nominee

• In case of permanent disability of the life assured due to accident benefits of permanent disability is also available

  Maturity benefits, Surrender benefit, guaranteed additions, critical illness riders, loyalty additions etc. are subject to choose of policy holder

  There are tax benefits under section 80C and 10 (10d) under the income tax act

• Life Insurance can be taken by individual or groups

• There are different types of plans designed to fulfil the needs of customers such as term plans, saving plan, plans for children's education or marriage, wealth creation or retirement plans.

• Life Insurance is taken for financial security and safeguards one's family in case of unforeseen event of passing away of policy holder. Life Insurance helps in the maintenance the desired standard of life after the person is not there if adequate insurance is taken

In health insurance following benefits at are available

• It covers treatment cost for illnesses or medical conditions limited to a maximum coverage amount and other policy conditions

• No claim bonus can be added to some policies, few policies offer free health check-ups as well.

• Income tax benefit is available under section 80D of income tax act.

• It can be taken by an individual, a family or a group.

• Comprehensive Health Insurance plans, critical illness coverage etc. are available in health insurance policies.

• It covers hospitalization and treatment costs both.

life and health insurance are two of the most important financial products one must buy to fulfil his needs whether one is trying to save for retirement, trying to secure his family, trying to arrange for the education of children and their marriage or pay off debt or take care of existing mortgage, life and health insurance can help.