On the surface, it's a bit like comparing apples and turnips.
Life insurance is designed to provide a lump sum to secure your family's wealth and lifestyle if you're no longer around. Health insurance can give you faster and more affordable access to high-quality medical treatment.
Each type of cover serves a completely different purpose – and it's their differences that make them great together. So let's take a look at how they work, and how they can work for you.
Health insurance pays out for surgery and other private hospital costs, on a claim-by-claim basis. It can help you get treated faster, as you don't have to wait in the public healthcare system.
Not all health insurance policies are created equal. Depending on your needs, you may choose to cover the cost of private medical treatment, specialist appointments or even GP visits. Some policies even offer cover for non-Pharmac funded treatments – giving you more choice in times of need.
The life insurance benefit is pretty straightforward. It's designed to pay out a lump sum to your family if you were to unexpectedly pass away, or be diagnosed with a terminal illness with a life expectancy of less than 12 months; there's also an option to add trauma insurance to your policy, for extra cover for specified critical illnesses.
Life insurance is usually a good idea if you have people depending on your income, a mortgage to repay, or high levels of debt. It's not about you – it's about protecting your loved ones' financial future from the unexpected.
It's how they work together that matters
As you can see, these types of cover have almost nothing in common, except for one thing – they can ease the financial stress of a life-changing event, and give you and your family peace of mind.
Having a combination of life and health insurance can provide the foundation for a comprehensive protection plan – one that protects your family's finances at any stage of life.
Looking at health insurance, life insurance – or maybe both?
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Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.