For some people there are those who think that life insurance and health insurance are the same thing. Though both of them are 2 different products. Although they are different, they provide important benefits for its clients to deal with future possibilities.
For those of you who are still confused about the difference between life insurance and health insurance, please see the explanation below.
Difference Between Life Insurance And Health Insurance
1. Types of Risks Borne
In terms of the risks covered, these two insurances have a clear difference. Life insurance is a family protection program in case of undesirable things, for example death . Life insurance is intended to provide financial guarantees for families if a life insurance customer dies.
Customers who participate in life insurance, pay a certain amount of premiums to the life insurance company with an agreement from both parties. Later, if the customer dies, the money will be given to the heirs/family who have been stated in the contract agreement.
While health insurance is insurance that provides health insurance for its customers including hospital costs, medicines, routine health checks, general check-ups, vaccinations and so on.
2. Insurance Benefits
Although the different risks covered, life insurance and health insurance both provide benefits for their customers. The difference is the beneficiary.
If life insurance, if the customer experiences a disaster and dies, the one who will benefit is the family / heirs who have been stated in the life insurance agreement that has been previously agreed upon by both parties. It can be said that the suransi of the soul provides financial guarantees for the family / heirs of the policyholder.
As for health insurance, those who receive benefits are the customers themselves. If in the future if the customer experiences illness or other health problems, the health insurance will cover the costs that have been incurred for the medical expenses including regular visits to the doctor in accordance with the agreements agreed upon by both parties.
3. How To Claim Insurance
Different types of risks covered are different ways of claiming insurance. If the life insurance that receives the benefit is the family / heir of the customer, then the claim and the requirements for completeness of documents are all prepared by the family / heirs.
When the customer dies, the heir must submit a life insurance claim equipped with his insurance policy with the insurance company. After that, the life insurance company will check and the process of verifying data and life insurance claims will be given to the family / heirs after the claim submission process is approved.
Then what about the process of submitting a health insurance claim?
Claims on health insurance can be made with two systems, namely cashless and reimbursement. In the cashless system, insurance claims will be paid directly by the health insurance company to the hospital where the customer is being treated.
Meanwhile, in the reimbursement system, customers will get compensation for the cost of medicines and treatment costs borne by the insurance company. Payment of claims is given for all costs that have been incurred by the customer.
That's the difference between life insurance and health insurance. By knowing the difference between life insurance and health insurance, it is hoped that people can wisely choose the type of insurance that suits their needs.