Why Should You Combine Health And Life Insurance Plans?

Are you confused between purchasing a life and health insurance policy?

Well, you can combine both and cover your life and medical expenses. A life insurance policy provides peace of mind that your family is financially covered after your demise. But what about your health that secures your life?

This approach simplifies your insurance management and provides comprehensive coverage that addresses both health-related expenses and life coverage needs. Here’s a detailed exploration of why you should consider this combination.

What are the Benefits of Combining Health And Life Insurance Plans?

Both health and life insurance policies are crucial in securing an individual's life from unforeseen risks. However, combining the two can be more beneficial in many ways. Here are some of them:

●       Saves the Cost of Two Insurance Policies

You pay a combined premium when you bundle health and life insurance policies. This saves the expense of paying two premiums for two different insurance policies. You can get health and life insurance benefits by paying a little more.

●       Integrated Management of Insurance Plans

When you combine two different insurance policies, you can save time and hassles of managing multiple policies. Moreover, neither of these policies accumulates cash value, so combining them helps track them seamlessly.

●       Offers Comprehensive Financial Security

With bundled health and life insurance, you get comprehensive coverage for an insured’s untimely death and cashless treatment facilities during medical emergencies. In case of the policyholder’s demise, the family members can claim death benefits and ensure financial security.

It also covers post- and pre-hospitalisation costs, medical expenses, etc., in case of medical issues. Thus, by bundling health and life insurance, you get multiple benefits and coverage under a single policy.

●       Personalised Policy Plans

Combining health and life insurance policies allows you to choose policy terms, coverage, and add-ons as per your requirements. This enables you to select the policy benefits and customise the coverage to fit your and your family’s unique needs.

●       Offers Tax Benefits

As both types of insurance are combined in a single plan, policyholders can avail health and life insurance tax benefits simultaneously. The insured's beneficiaries can avail tax-free death benefits under Section 10(10D) of the Income Tax Act. Moreover, the policyholder can avail of tax benefits under the IT Act’s Sections 80C and 80D.

Features of Health Insurance Policies

Considering the rising medical expenses and increasing ratio of life-threatening diseases, the need for comprehensive health insurance has been inevitable. Here are some of the features of a health insurance policy:

●       Cashless Treatment

Individuals can avail of cashless treatment if they visit any of their health insurance provider's network hospitals during medical emergencies.

●       Top-notch Healthcare Facilities

The health insurance policy covers your medical expenses, and you get access to advanced treatments and healthcare facilities in your preferred hospitals.

●       Beats Medical Inflation

With the advancement of medical science, most diseases can now be cured. However, this improvement has also led to increases in treatment costs. Having medical insurance is necessary to cover these high costs.

●       Covers All Medical Costs

Health insurance policies cover all medical expenses, from hospitalisation to ambulance charges. Some of the costs covered under this policy include pre- and post-hospitalisation, organ donor charges, daycare treatments, and mental healthcare.

Features of Life Insurance Policies

Here are some of the features of a life insurance policy:

●       Long-term Financial Goals

As the tenure of life insurance policies is extended over years, you can achieve long-term goals with the accumulated savings. You can invest the sum assured or the maturity amount to build a corpus fund, buy a house, or start a business.

●       Financial Support

Life insurance plans cover the policyholder’s family financially in case of the latter’s unfortunate demise within the policy period. The policyholder's family can claim death benefits to cover their financial needs, such as paying off debts, credit card bills, loans, and more.

●       Tax Benefits

Individuals can claim tax benefits under the IT Act’s Section 80C (₹1.5 Lakh deduction on premiums paid per financial year) and Section 10(10D) (complete exemption on death benefit).

●       Planning for Retirement

Longer tenure of a life insurance policy helps accumulate considerable savings, ensuring that you can lead a comfortable life after retirement.

Factors to Consider While Combining Health And Life Insurance

Combining health and life insurance policies is beneficial in many ways. However, the coverage and benefits may vary depending on your chosen insurance company. So, it is essential to consider a few things before bundling the two:

• You can compare the combined plan with individual life and health insurance policies to determine whether the coverage you are getting is adequate.

• Check if a combined plan is flexible enough to meet your long-term insurance requirements.

• Always seek professional advice to avail yourself of better insurance coverage and benefits.

Combining health and life insurance plans is not just a smart financial decision but an essential strategy for safeguarding your health and your family's future. The cost efficiency, simplified management, and flexibility offered by combined plans make them attractive for anyone looking to secure their financial well-being.

However, when selecting an insurer, be sure to check out their claim settlement ratio and settlement timelines. This ensures that you or your nominees get timely financial compensation when needed.