What is the difference between term insurance, life insurance, and health insurance?
In the Indian market, there are various types of insurance available, but the primary insurance that aids us in unforeseen life events are term insurance, life insurance, and health insurance.
Differences between the three:
- Term insurance provides coverage for the premature death of the policyholder within a fixed term.
- Life insurance provides coverage on the maturity of the policy.
- Health insurance provides coverage for medical claims within the tenure.
- Tenure of Term insurance ranges from 10 to 40 years
- Tenure of Life Insurance ranges from 5 to 40 years
- Tenure of Health Insurance ranges from 5 to 10 years
- Term insurance is the cheapest among all the insurances.
- Premium is comparatively higher than term insurance coverage.
- Premium increases with the age of the policyholder.
- Term Insurance is only payable if the policyholder dies till the maturity of the policy.
- Life Insurance provides benefits for both conditions if the policyholder is alive or with his demise on the maturity of the policy.
- In Health Insurance, there are no benefits if the policyholder dies immediately with the illness and without hospitalization.
These are the basic difference between the three most popular insurance in India. You can know more about them from financial experts like Future Value.