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

Deepak Yohannanmyinsuranceclub.comInsurance is a boon but unfortunately we aren’t always equipped to get every possible kind of insurance for ourselves and our families. A major reason for this is the rising costs. While most people want maximum coverage, they are often forced into choosing only certain kinds of insurance. So if you too find yourself at such a crossroad and can afford either a health plan or a term plan, you need to understand and analyze your requirements and then make a final selection.

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.