Life Insurance vs Health Insurance

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Life Insurance vs Health Insurance

Life Insurance vs Health Insurance
  • 21st Sep 2021 |
  • 1,882

It is comforting to know that you and your loved ones have a financial safety net in case your health takes an unexpected turn. Planning ahead and saving for a rainy day is always a good idea, but sometimes it can be hard to manage different insurance policies, especially during days when the money is tight. Hence, it is important to choose an insurance policy that is going to be beneficial and easy to invest in.

When it comes to picking the best insurance policies, two particular ones that should be a part of your financial planning are Life Insurance and Health insurance. Though these terms are quite common, people often get confused regarding their varying terms and conditions. Read along to understand the basics of each policy.

Life Insurance Plans

Life insurance pays out a death benefit to the insured individual’s beneficiaries. It acts as a financial safety net for the family in case of the demise of the policyholder. The main purpose is to leave behind sufficient monetary funds to replace the loss of future income, and cover expenses like day-to-day costs, outstanding medical bills, or any other debts. It can also be used to fund saving accounts for education or spousal retirement.

Life Insurance vs Health Insurance Infographic

Benefits of Life Insurance Plans

The two most important reasons as to why you need life insurance is that -

  • It offers financial security to your family members when you are not around to take care of their needs anymore.
  • In some cases, the money comes back to the beneficiaries tax-free upon maturity.

As per the current Indian tax laws, life insurances also offer tax exemptions. However, the tax benefits alone should not be your motivation for buying into a life insurance plan.

Health Insurance Plans

Health Insurance Plans or a Medical health insurance is limited to paying for the policyholder’s current medical expenses that can include doctor’s consultation charges, hospital stays, medical procedures, medicines, tests, etc. The premiums for life insurance policies can either be fixed or flexible, depending on the choice of plans. However, medical insurance premiums are fixed but the tenure is not, as the goal here is to offer protection, not investment.

Benefits of Health Insurance Plans

The central purpose of any kind of medical insurance plan is to ensure that -

  • You and your added beneficiaries receive the best possible medical care facilities without any stress on finances.
  • Similar to life insurance policies, health insurance plans also offer tax benefits, among other added benefits like critical illness covers, pre and post-hospitalisation expense cover, home hospitalisation cover, maternity benefits, etc.

While both types of insurance policies are essential, it is imperative that you at least get one of either of the two. Paying for health and life insurance simultaneously becomes a lot less scary when you buy the coverage you need. Those of you under the age of 30 who do not have a chronic condition may be able to avoid the latter. However, people with dependents should not avoid both these needs. Given the uncertain times that we are living in, it is better to be prepared for the future and protect yourself as well as your loved ones.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

7 Superficial Reasons People Avoid Buying Insurance Online

Choose the Nominee of a Term Life Insurance Plan Wisely

Life Insurance Plans for Women

In India, should NRIs purchase life insurance?

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

How to Buy a Life Insurance Plan?

5 Reasons Why a Women Should Buy a Life Insurance

How Often You Must Review Your Life Insurance Policy?

How to Make Death Claims on Life Insurance?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Can You Transfer Life Insurance Policies to Another Company in India?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Different Types of Insurance Policies in India

Term Insurance Vs Life insurance: Small Details, Big Differences

Best Insurance Plans in India

Role of IRDAI in the Insurance Sector

Can NRI Buy Life Insurance in India?

Staying Insured While Investing

What Is the Procedure to choose a nomination in life insurance policy?

What is the Current Trend in Term Insurance?

Adding A Child to Your Life Insurance Policy?

When are Millennials required to take out a life insurance policy?

How To Use Different Types Of Life Insurance For Retirement Planning?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Nominee in insurance - A Complete Guide on nomination in insurance

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Term Life Insurance Vs Money Back Life Insurance

All About Backdating in Life Insurance

Who Is A Nominee In A Life Insurance Plan?

Does Family History Affects your Term Life Insurance Rates?

What Is Social Impact Investing and How Does It Benefit Society?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Life Insurance for Overweight Applicants

What is an Endowment Plan?

All About Life Insurance and How It Works?

What is the Difference Between Limited and Regular Pay Insurance Plan?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

9 Most Important Things You Must Learn About Paying Life Insurance Premium

A Term Insurance Guide for Disabled People

Life Insurance vs Mutual Funds

Why Buying a Term Insurance is Important for all Parents

Term Insurance Claim Process

How to Choose Life Insurance for All Ages?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

ULIPs: Suitable for all

Top 5 Common Life Insurance Myths and Facts

Choosing the Right Life Insurance

Types of Insurance You Must Invest in for Secure Future

What is Underinsurance & The Dangers of Being Underinsured

Do Life Insurance Premiums Increase Every Year?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Why Do Life Insurance Agents Avoid Selling Term Plans?

What are robo-advisors in insurance?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Biggest Life Insurance Myths

Why is Medical Test Important While Buying a Term Insurance?

How Much Life Insurance Do You Need?

Life Insurance with Money Back vs Without Money Back

Key Things to Review in Your Life Insurance Policy Document

When Should You Review Term Life Insurance of Yours?

Term Life Insurance vs. Accidental Death Insurance

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Important Life Insurance Terms You Must Know

Different Types Of Life Insurance In India

Why do most Indians choose the wrong way to buy life insurance?

Various Term Insurance Premium Payment Options Available in India

What Is Insurance Coverage?

What Is Staggered Payment Option Under Term Insurance Policy?

What is a savings plan?

Is It Time to Review Life Insurance Policy of Yours?

Think About Life Insurance Sooner than Later

How to Revive the Lapsed Life Insurance Policy?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Life Insurance and Millennials

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Health Insurance VS Life Insurance

Always keep your Nominee informed

भारत में जीवन बीमा पॉलिसियों के प्रकार

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

What is Life Insurance?

Why You Should Never Cancel Life Insurance Policy

Types of Life Insurance Policies in India

Process of Filing A Claim For Life Insurance

6 Different Types of Insurance Policies

Insurance Vs Investment - A Guide to Your Financial Goals

How to Choose the Right Life Insurance Policy for Your Age?

How Does Life Insurance Work?

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What Happens If I Stop Paying My Life Insurance Premium?

Sabse Pehle Life Insurance

Life Insurance Beneficiary

Choosing a Life Insurance Beneficiary

Term Insurance Tips for NRIs in India

5 Things to Keep in Mind While Buying Life Insurance Policy

Why Online Term Insurance Plans Cheap?

Important Terminologies of Life Insurance

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Beware of Phishing & Fraud Insurance Calls

Life Insurance Policy Closure

Does Life Insurance Cover Terminal Illness?

Difference Between Term Insurance and Endowment Plan

How to Buy a Term Life Insurance Online

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Voluntary Life Insurance Policy Vs Group Life Insurance

How Many Insurances Should I Have?

What are the Benefits of Endowment Policy?

How to Choose a Life Insurance Policy

A Step-by-Step Guide: How To Make An Investment Plan?

Life Insurance for Millennials

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Should you buy a Renewable Term Life Policy?

5 Easy Steps to Buying A Policy

5 Advantages of Life Insurance Going Digital

5 Ways to ensure faster settlement of claims

Everything You Must Know About ULIP Riders

Most Common Life Insurance Riders to Enhance Your Existing Policy

Why Life Insurance Is Always a Smart Decision

What Is a Whole Life Insurance Plan?

Why Your Family Should Know About Your Life Insurance Policy?

What is Group Insurance?

How to Find the Best Term Insurance Plan in Seven Steps

What Should One Expect During the Medical Evaluation for Life Insurance?

Why One Must Buy Term Insurance before 25 Years

Choosing Between Short-Term & Long-Term Insurance Plans

Important Features of a Term Insurance Plan

Can a Term Plan be the Substitute for a Retirement Plan?

Is Life Insurance For Millennials Really Needed?

5 Smart Steps to keep in mind while buying term policies

What Is Insurance Rider and It’s Benefits?

What is Sum Assured in Endowment Policy?

Does Life Insurance Pay for Suicidal Death?

5 Common Life Insurance FAQs and Answers

Digital Life Certificate for Pensioners Seeking Pension

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Why Renewal of Term Insurance Plan is Important

Take 100% Responsibility of Your Family with Term Life Insurance

Do Your Financial Planning with Life Insurance!

All about IRDAI

All about Your Rights and Duties While Buying Life Insurance Policy

NRI Premium Payment Options

Loan Against Life Insurance Policy

How to Calculate Human Life Value(HLV)?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Life Insurance and Retirement Planning

Life Insurance for Overweight Applicants

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

How Much Life Insurance Cover Do I Need?

6 Things You May Not Know about Life Insurance

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

5 Things to Consider Before You Buy Life Insurance

Kotak Life Claim Settlement Ratio

Reasons Why Term Insurance Claims Get Rejected

Difference Between Insurance and Assurance?

Types of Life Insurance Or One Investment, Many Options

What is a Single Premium Term Plan and its Tax Benefit?

Is it Worth Buying Disability Rider on Term Insurance?

Benefits of Term Insurance with Critical Illness Rider

How to Customize Your Life Insurance Policy with Riders

Why do I Need Life Insurance?

What is Human Life value and a Human Life Value Calculator?

Why Term Insurance for Women is Important?

Customer Awareness on Information Security

What Is Financial Planning?

First Job? Here’s Some Tips on How to Manage Finances

Difference Between ULIP and Endowment Plan?

Difference Between Money Back and Endowment Policy

How Do Term Insurance Plans Differ for Smokers?

All about Life Insurance Calculators

Terms and Conditions of Term Insurance Plans

Compare Different Life Insurance Products Offered By Kotak Life

FAQs on Life Insurance

Details Required To Be Filled In A Life Insurance Form

Does Life Insurance Policy Cover Covid Death?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Is It Advisable To Have Multiple Life Insurance Policies?

5 Reasons Why You Need Life Insurance in College

“Life” Insurance or “Death” Insurance?

Is Life Insurance an Investment?

Insurance Changes You Need to Make Post Marriage

Life Insurance Vs. Mutual Funds Investment

What is Minimum Life Insurance Policy?

What Is Investment Insurance?

Can An Individual Buy Multiple Term Insurance Plans?