Term Plan Vs Medical Insurance: Which one is better?

Term Plan Vs Medical Insurance: Which one is better?PolicybazaarAverage Rating / 5 ( reviews)
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We all love our family and we want to see our family happy and independent when you are around and even when you are gone. Term life insurance is often reckoned by an overly emotional person’s financial resolution. However, this is not true.

If you are enough financially stable to pay the annual premium and buy yourself some peace of mind that there will be at least something to take care of your family’s financial needs even after you are gone, then why not purchase a term insurance plan?

Well, the same thing applies to medical insurance. If you care about your loved one’s health & well-being and if you are already aware of the fact that health issues do not come with prior notice, you will probably want to buy medical insurance for you as well as your loved ones. Buying apt medical insurance will help you to bear all of your hefty medical bills with ease. So, be smart individual and plan things before it gets too late.

Both of these insurance plans are good at their place but which one to choose. To help you decide, we have explained the term plan as well as medical insurance in this article so that you can choose the right one as per your need.

What is Term Insurance Plan?

Term insurance policy is a pure protection plan that is designed to offer a sum assured to the beneficiary or nominee in case of the sudden demise of the insured during the policy tenure. The nominee or beneficiary could be your parents, wife, or children. The benefits under a term plan are payable only upon the death of the insured and it does not provide maturity benefits which is why it is less expensive as compared to other life insurance policies.

In simple words, term life insurance will take care of your loved one’s financial requirements when you are gone thus ensuring you absolute peace of mind.

Why Should You Opt For Term Insurance?

Term Plans have the lowest premium as compared to other insurance plans. Thus, everyone can easily afford to take this plan. The sum assured that is given to the beneficiary after the sudden demise of the policyholder can be utilized to repay any outstanding debt you must have, pay for a child’s education, and replace the future income that your loved ones would still require to lead a happy & healthy life.

Thus, if you purchase an adequate term plan while you are young and healthy, it can protect you and your loved ones against various risks life might throw your way any time.

What is Medical Insurance?

Medical Insurance is also referred to as health insurance. It is a contract between the policyholder and an insurance company that covers all costs which are related to the medical expenditures of the policyholder in return for a fixed premium. Well, it can be purchased for an individual as well as for the whole family and can be utilized to avail medical help in an emergency or even a pre-planned medical procedure without stressing about financial implications.

Why Should You Opt For Medical Insurance?

Medical emergencies can knock your door at any time and increases your financial burden. That is why it is best to be well-prepared for all such emergencies and it can be done by opting for medical insurance. The main aim of medical insurance is to cover & reimburse the medical expenses incurred while treating medical conditions or critical illnesses within the policy sum assured.

Buying medical insurance ensures you complete peace of mind knowing that you will get financial assistance when dealing with medical emergencies. In addition to this, adequate medical insurance not only just covers hospital expenditures but also takes care of pre & post hospitalization expenditures. Thus, buying medical insurance definitely makes sense since it helps in reducing the burden of your pocket.

Difference between Term Insurance Plan & Medical Insurance

Feature

Term Plan

Medical Insurance

Reason for buying

A term plan is designed to financially protect the beneficiary by offering sum assured in case something happens to the insured.

 

 

 

 

Medical insurance is designed to take care of the medical and hospitalization expenditures incurred by the insured or any other family member who is covered under the insurance policy.

 

 

 

 

 

Survival benefit

 

 

 

There is no maturity benefit provided except in term plan with return of premium plans where in the premium paid is returned at the end of the policy tenure.

In medical insurance, you can’t recover the money that you have paid for the premium. Since this type of insurance plan does not provide life cover so there is no lump sum payable in an event of the untimely demise of the insured.

Premium Cost

There premium cost is usually very less.

The premium cost is comparatively quite high.

Conclusion                                               

Both term insurance plan and medical insurance have their distinct set of benefits while being two of the most important type of insurance plans. So, you can choose any of them as per your need and budget.

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