Why You Need Both Life Insurance And Health Insurance

One who is planning to buy his first insurance policy often gets stuck in a dilemma from where to start health insurance or life insurance. What makes more sense for your family life insurance or health insurance?

Death is less probable compared to hospitalization. You can be almost sure that in next five-ten years, you or one of your family member will be hospitalized for any illness. Hence, from a probability point of view health insurance makes more sense.

Those in favor of life insurance argue that healthcare expenses somehow can be arranged in worst case and life will again be back on track somehow. But if you ignore life insurance plan, it’s a big risk for your family future because the amount required by your family can’t be arranged by asking it from someone. In case of your untimely death, your family will need monthly expenses for lifetime, education and marriage related expenses of your children. Hence, from a point of view of high impact on your financial life, life insurance is more important.

Therefore, it is advisable that you maintain a proper balance between adequate health insurance and life insurance.

Due to advancements in treatment, medical procedures are taking much lesser time than earlier and technology is helping in faster recuperation.  Procedures such as angioplasty, gall bladder removal, cataract, etc which use to take several days earlier, now take less than 24 hours. Hence, it becomes imperative to pay attention to daycare treatments covered in a health insurance policy.

Health insurance generally covers hospitalization that involves at least 24 hours of hospitalization. Hence, medical procedures that require less than 24 hours come under daycare treatment.

Daycare treatment is an important factor while choosing right health insurance policy as daycare treatment expenses accounts almost twice the hospitalization costs. And also while time taken for treatment and medical procedures is taking lesser and lesser time, but still it is getting expensive day-by-day.

Generally, health insurance covers procedures that use to take more than 24 hours but now take less time due to medical advancements such as angioplasty, cataract, etc, under daycare treatment. Minor treatments that need hospital infrastructure to be carried out, for instance, treatments that require general anesthesia such as benign tumor removal, etc, are also covered under daycare treatment.

However, remember while buying a health insurance policy, do not evaluate a health insurance policy by number of procedures covered. An insurance company could have list of just 20 treatments but they could be very broad. So, go with a health insurance policy with broader categorization with smaller list as it will be more inclusive. The broader the definition, the better the chances of your purpose being served.

An insurance company which lists specific detailed list, may not cover a new treatment, as medical science advances rapidly  and hence may not pay you in future for new treatment under daycare treatment. However, the best option would be a health insurance policy that states all inclusive daycare procedures.