Health or term plan: Which is better when funds are low?

Reasons why you should opt for a term planA term plan, as we all know, is a wonderful insurance tool available to us. Term plans are inexpensive and provide a comprehensive cover. So if you have limited funds and are contemplating about buying a term plan, keep the following in mind:

Fixed premiums – The premium of a term life insurance policy is fixed throughout the policy period. So even if you develop a serious health condition, you won't be asked to pay more. This is a major reason why you should opt for a term plan. In a health plan however, the premium rates change, depending upon your health.

Hospitalization is temporary, death is permanent – If you or any person in the family requires urgent medical assistance, even without a health plan you may be able to arrange the funds. You can borrow the money required and then pay it off later when you are able to do so. However, if you die, your dependents will perhaps find it impossible to substitute your income and the loans they take will be very difficult to repay. Therefore having a term plan helps.

Reasons why you should opt for a health insurance planWhile term life insurance provides a comprehensive cover, we cannot deny the role of health insurance in our modern day lives. Health is a reason for constant worries and if you do not have proper health insurance in place, you will end up spending thousands of rupees on your medical bills. Take a look at the reasons as to why you must opt for a health plan.

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Deepak Yohannan

CEO|MyInsuranceClub.com

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Falling ill is more common than death – A person falls ill more often than he dies! As a result, you may want to stay prepared for the costs that you may incur due to ill health. While it is definitely wise to have your life covered, in today’s day and age when health is so fragile, it is also wise to have a health plan.

Peace of mind – With a health plan in place, you can rest assured that whenever there is a medical emergency in the family, you can afford to go to the best of hospitals and seek the best possible treatment. This is not possible in today’s expensive world without a health plan.

So as we can see, term plans and health plans are both important. So analyze your requirements and see which plan you need more. If you have other earning members in the family who can support your dependents after your death, opt for a health plan. If you are confident about your health and maintain a healthy lifestyle, opt for a term plan. Either ways, make sure you are protected.

The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal.