The Difference Between Life Insurance and Health Insurance

There's quite a difference between Life Insurance and Health Insurance, and it's important to know what you pay for and what you get. Sometimes you see life insurance and health insurance lumped together because of the fact that they both insure the person (rather than the car, the house, etc).

The difference is that if you insure your health, with health insurance, then if you become ill then the insurance company pays for your medical treatment, whereas with life insurance, if you die then the insurance company pays your nearest and dearest and those who depend on you.

They can't replace you, but they can provide financial help to cover the losses incurred because of your absence. If you have a job that pays a salary then in the case of a life insurance claim the insurance company pays so your family aren't left in stuck.

Anyway, here are the categories:

Health Insurance - covers your medical expenses if you get ill.

Life Insurance - covers your family against financial hardship in case you die.