While most people know they must have health and life insurance in place to protect themselves and their families, not everyone is fully aware of the many differences between these two insurance products. The following guide spells out the major differences between them so you can make the best possible decision when selecting these policies.  

Health Insurance

Health insurance works much like many other insurance products. Upon purchasing a policy, you must remit a premium each month to retain your policy. You may also be asked to pay a deductible for any healthcare you require, which is an amount of money you must pay out of pocket before the insurance kicks in. Health insurance can be provided by an employer or purchased by you on the open marketplace.

Some providers have a network of doctors and medical professionals you must visit to be covered. Going outside of the network means you must pay for the service yourself or that less of it will be covered by the insurer. You’ll also be faced with a coverage limit, meaning that your insurance will only provide a certain amount of money before it no longer covers treatments and procedures. Depending on the policy, certain types of treatments and procedures may not be covered at all. 

Life Insurance

Life insurance does have a healthcare component, in that proceeds of the insurance policies can be used to pay for end-of-life care incurred as a result of a terminal illness. It can also cover funeral costs, supplement income for your family, and be used to create a college fund for your children.

Term life insurance policies are only active for a certain term, usually ranging from 10 to 30 years. If a person dies during the term, their family will receive an agreed-upon benefit. If the person outlives the term, they may need to purchase more insurance or the policy will simply become inactive. Whole life insurance is strong as long as premiums are being paid. While more expensive, it also has an investment component since the policy accrues cash value. This can be passed onto heirs after you’re gone or borrowed against while you’re still alive. 

Whether you’re shopping for life insurance or health insurance, Southern Insurance Associates in Hixson, TN, is here to lend a hand. Since 2002, these skilled insurance agents have been helping local clients protect the items and people that matter most. As an independent agency, clients are privy to better rates and terms due to their strong relationships with more than 70 insurance companies. Along with health and life, they also offer auto coverage and business insurance. Call (423) 296-0626 to schedule a consultation today or visit the website for more information.