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Health Insurance vs. Life Insurance: Which one do I need?

life insurance

It’s no surprise that in uncertain economic times, many people begin to start thinking about some form of protection insurance.   Life Insurance and Health Insurance are two major types of protection that you may wish to consider but what’s the difference, and which one should you buy?

Before you decide what to do, it’s important to look at both types of insurance closely, so you can understand exactly what they both offer.  Although they both sound the same by name, take a closer look and you’ll see that they actually offer very different services.

We’ve compared both types of insurance policy to help you understand what’s on offer:

Health Insurance

Private health insurance is taken out to assist with medical costs and allows you to maintain your health, whilst bypassing potentially lengthy waiting lists in the NHS. Having a policy in place will cover all or part of the cost of private treatment, giving you access to a number of private hospitals and consultants as well as drugs or treatments that may not be available on the NHS.

The full extent of what Health Insurance covers will depend on the level of cover you have.  The most basic coverage will have a number of limitations, such as a restricted choice of hospital and may only cover minor conditions.  The more extensive your coverage, the higher the price of your premium.   Before taking out a policy it’s essential that you research exactly what each policy covers – there’s no point paying more for something that you don’t actually need.

Whilst Health Insurance will usually give you quicker access to treatment, it’s important to note that your policy won’t usually cover pre-existing conditions and it also does not cover emergency treatment.  So if you require a trip to A&E or need medical assistance at home this is still covered by the NHS.

Find out more about Health Insurance & get a no-obligation quote.

Life Insurance

Whilst health insurance is there to cover costs which help you maintain a healthy lifestyle, life insurance only pays out following your death.   A life insurance policy is a sum of money (of your own choosing) which is used to cover your debts or leave an inheritance for your benefactors when you pass away.

The main reason that people choose to take out life insurance is to offer their loved ones an element of financial security for when they are no longer around – particularly if there is likely to be debts to pay, such as an outstanding mortgage balance or money on credit cards or loans.  It may also be used to provide a wealthier future for your children, perhaps providing them with an education or a deposit towards their home.    Even if you don’t have any debts to cover, a life insurance policy could help your loved ones to cover the cost of the funeral.

In effect, life insurance serves as a replacement income for your family, particularly if you are the main breadwinner and your family relies on your income for covering the household bills and day to day living.

Find out more about Life Insurance & get a no-obligation quote.

Which insurance should I choose?

As you can see, health insurance and life insurance are actually quite different so ultimately it shouldn’t be a matter of choosing one policy over another as both serve different purposes.

Life Insurance is usually best for those with a mortgage or large debts and/or a family who rely on their income.

Health Insurance is usually best for people looking to maintain their health – and their privacy – without having to rely on the NHS.  Family policies are often available which will cover you, your spouse/partner and your children.

If affordable to do so, then you may want to consider both policies, but if you only have the funds for one, then you need to look closely at the benefits of both life and health insurance and work out which one is best for your situation.

Call our super-friendly team now on 01244 950 306 to speak to a specialist about your life & health insurance requirements. 

The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.


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