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Insurance

Life Insurance vs. Health Insurance

Two different kinds of protection, and why one cannot replace the other.

4 min read · By Nivara Edge team

Different risks, different covers

Life insurance is designed to provide a financial benefit to nominees if the insured person passes away during the policy term, subject to its terms. It helps replace lost income and meet obligations.

Health insurance helps meet the cost of medical treatment, commonly hospitalization, subject to coverage, limits and exclusions.

Key differences

  • Trigger: life insurance responds to death (or maturity/survival in some plans); health insurance responds to medical events.
  • Who benefits: life insurance benefits nominees; health insurance pays for the insured person’s treatment.
  • Nature: life cover is typically a fixed sum assured; health insurance generally reimburses or pays for eligible expenses up to a limit.

Do I need both?

They address different financial risks, so one does not substitute for the other. Whether and how much of each you need depends on your dependants, liabilities and existing cover.

Learn more on our Life Insurance and Health Insurance pages.

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Nivara Edge team Educational content prepared by the Nivara Edge team. This is general information, not personal advice.

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