The only constant aspect of life is change. Amidst the chaos of life, it is comforting to know that your family will not suffer in case things don’t go according to your plans. If you’re looking for a similar peace of mind, then you have undoubtedly considered health insurance and life insurance.

But how do you know if you’re making the right choice between the two of them? Let’s first understand them in depth so you can defend your own decisions.

What Is Health Insurance?

In the UK, health insurance refers to private medical insurance. It is opted as coverage against hospitalization and medical expenses. As opposed to the NHS, where treatment is free at the point of use but takes excessive amounts of time, private practices are expensive but quick and private. Health insurances come in handy during times like this, as your treatment will be paid for in exchange for a monthly premium. Depending upon the type of health insurance, the expenses are either directly paid on your behalf or reimbursed in time as long as the right documents are provided.

There is no wrong time to make the right decision. You can undoubtedly consider health insurance, but you need to hand-pick what’s best for you. Let’s learn to pick the right health insurance!

Private Health Insurance

This is an individual health policy, with the option to cover your family as part of a work health insurance scheme. This way, you may not need to disclose your medical history. You will want to consider what the insurance covers and won’t if there are any monetary limits on the policy or any excesses.

Hospital charges and consultant fees are covered, along with cancer treatment and surgery if necessary. Depending on the level of your cover, you could also be covered for mental health care and other therapies like physio.

Diagnostic Insurance

This option is economical compared to private health insurance but keep in mind that it only covers the costs of the diagnosis. If further treatments are necessary, you will have to pay for it yourself or use the NHS.

If you are confident about your health, however, this option helps you bypass the NHS waiting list and see specialists quickly when necessary. The insurance, also known as Speedy Diagnostics, has no cap on the number of annual consultations and tests you can have done for your specialist to make a diagnosis.

Cash Plans

These are schemes that cover routine medical and dental expenses for a low monthly fee. Although it isn’t the same as private medical insurance, it does give you access to benefits like the medical helpline, and pre-existing conditions are included.

If you have specific health needs that need to be covered and feel that private health insurance is draining your monthly savings, this is the plan to choose as it is highly customizable for your benefit.

Condition Specific Insurance

If the time-consuming hassle of dealing with the NHS is not one of your concerns, but you have a specific condition that requires attention, this is a low-cost private option. This insurance does not shy away from major conditions like cancer, nor does it exclude minor therapies like physiotherapy as the providers understand every illness is dire in its own way.

What Is Life Insurance?

Life insurance is a contract where the policyholder’s beneficiaries are paid a lump-sum benefit after the death of the insured person or after a specific amount of time. The amount varies based on the premiums paid by the policyholder. Life insurance provides financial security by substituting lost income and covering necessary expenses.

Just like health insurance, you need to do your research to pick the right life insurance for you:

• Term life insurance runs for a specified amount of time or ‘term.’
• Whole life insurance, as the name suggests, is a life cover policy until you die
• Joint life insurance covers you and your partner in one policy
• Over 50s life insurance covers whole life policies for people within a specific age bracket beyond 50
• Critical illness life insurance is an option to set some money aside if you suffer from a critical illness and know of it.
• Terminal illness life insurance pays out early if you are diagnosed with a terminal illness and are projected to die within a limited amount of time.
• Free Parent Life insurance is a Post Office Insurance product that offers free cover for a year per parent per child under 4. It additionally also offers a £15,000 cover per policy in case you die within a year of taking out a policy.

Life Insurance vs. Health Insurance

There are fundamental differences between health insurance and life insurance.

Conclusion

There’s more than one way to save money with life or health insurance. It entirely depends on what you need and how you choose to pick the right financial aid for yourself. Whether you feel it important to invest in life and health insurance or just one is entirely your choice. At the end of the day, insurances are not mandatory but a luxury safety net when invested wisely.

Now that you know how they function and the options available with each of them, you can narrow down your requirements and budget and pick a provider that works best for you and your loved ones. Give the best you can for your family in life and after. Here’s to good health!