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What Should I Go For Life Insurance or Health Insurance?

Sep 28, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

What Should I Go For Life Insurance or Health Insurance? - Aegon Life

Both life insurance and health insurance have their own pro and cons. You need to weigh them both to make an informed decision.

When it comes to peace of mind, having a financial safety-net for your family today works much better than a spa voucher. However, unexpected financial crunches could make paying for the same feel as a grueling task. As expenses start to mount, it can result in dropping one or the other between a life insurance and a health plan to make ends meet.

Age plays a crucial deciding factor when choosing between the two, while reality suggests a need for both. We talk about how different age groups should approach the purchase of life insurance plan and health insurance plan.

The ‘Young Professionals’

If you are a 20-something individual, who has just stepped into your careers, then starting early and buying a term insurance plan will be a right choice.

If you are relying on your parent’s life insurance policy, and you are below the age of 30, then you might want to look up basic health insurance plans to cover you. However, if your family, say parents, siblings or grand-parents are financially dependent on you, considering a sizeable life insurance plan to handle their needs is highly recommended.

The ‘Parent Professionals’

Given the added responsibility of parents to look after your kids to the best of your ability, it is vital to consider buying both life insurance and health insurance. Health insurance plans offered by employers will prove to be less costly than their market counterparts. But they may not be as inclusive as you may need, so it is recommended that you purchase a basic health insurance plan and invest in riders to cover what your employer’s plan doesn’t offer.

In addition to health coverage, most individuals forget or ignore the need to have a life insurance, mostly due to the added cost and the fact that there is no pay-out for surviving the policy term. But it need not cost you a bundle to give your loved ones a financial safety net.

A term insurance policy works in your favor due to its low-cost premiums and high payoff value. Aegon Life offers a host of term insurance plans such as iTerm that provides your family with financial safety at one of the most affordable rates. Its iTerm Plus plan is a comprehensive one wherein you can choose from four plan options; Life Plan, Life Plus plan, Life and Health plan, Life & Health plus plan.

Another way to keep the cost down is to buy only as much life insurance as you need. There are a couple of ways to figure this out. The preferred thumb rule to calculating your insurance needs is to add all your liabilities to 300 times your monthly expenses. Add another 30-40 lakh to the amount and insure yourself for the amount.

The Retirees

If you still have loans to pay off – or if you’re living on a pension with insufficient or no survivor benefit – it is better to have some form of a back-up.

If your existing term policy is coming to an end, one option is to take out a smaller policy that provides a safety net during your empty nest period. As an added measure, if you have a term policy that includes a conversion feature, you could turn a portion of it into permanent life insurance.

When you are sure that you are covered for the right amount and by the right insurance policy, paying for health and life insurance simultaneously becomes easy. So, singles and couples, you shouldn’t compromise on both these insurance policies.

II/Sep 2018/4427

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iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
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