Medical Insurance Vs Life Insurance

Are you interested in securing your future?

Investing in medical insurance covers guarantees you a secure financial future.

Life and medical insurance are among the most popular insurance covers in today’s society.

Life insurance provides financial security in case of sudden death, while medical insurance protects you and your loved ones from illnesses as well as caters to any medical expenses.

Life insurance

Life insurance is a form of trust between the insurer and the policyholder, to provide coverage to the beneficiaries in the event of the policy holder’s premature death.

If it’s a suicide case that happens in a short period, probably in a year or less, after the policyholder gets the life insurance cover, the insurance company does not offer compensation to the beneficiaries.

Benefits of life insurance

Peace of mind

If you have a spouse or children or any other dependants, knowing that they are financially secured in case you cannot provide anymore, gives you a feeling of tranquility.

It is key that you evaluate your finances and your dependents’ needs to ensure that the amount you’ll leave for them will be adequate to sustain them.

Caters for costs in case of a terminal illness

Some life insurance policies cater for you in case of a critical illness diagnosis.

You may have a separate health insurance cover, but the bills incurred are huge and may require you to chip in from your personal accounts.

At this point, the life insurance company grants you a payout to ease your financial stress.

You must satisfy this condition to receive the benefits for a terminal illness.

The insurer may request the documentation of the medical reports and your medical history in case of such a plea.

The period to cover such expenses varies from insurers, but the insured must have been part of the policy for around 1-2 years.

The flexibility of life insurance

Before acquiring a life insurance policy, it is important that you think critically about this decision.

One factor to consider is if your current life circumstances necessitate a life insurance cover.

If it is necessary, pick a policy that is broad with a variety of options.

There are appropriate plans for different life stages, most jobs, and they offer numerous benefits.

Tax-free payouts

The pay outs are not taxed; hence the beneficiaries receive the amount as a whole.

This, however, should not be a reason for securing a life insurance plan. 

Medical insurance

People are now more conscious of medical treatments and precautionary steps to avoid sicknesses.

With the increase in the need to seek medical services, comes the increase in cost.

Many times, due to medical emergency, you end up using your money to cater for the treatment.

This ends up messing your financial plans and goals.

The introduction of medical insurance plans has made it easier to cater for such emergencies without touching on your funds.

Importance of medical insurance

Critical illness

Some plans offer coverage in case of critical illnesses by adding a rider as a part of the agreement.

This requires the insurer to provide large sums of money in case of any critical illness treatment.


Medical plans have a variety of aspects and amenities to select from.

The insured has a wide range of options to select from that will match their needs.

It is important that you research and understand the different medical insurance features before choosing a plan suitable for you.

Alternative treatment

Several insurers’ offer covers to alternative treatment like traditional treatment methods in their medical insurance plans, with particular conditions.

There is no restriction for the insured to undergo specific medical treatment. This enables them to undergo treatment of their choice.

Eases financial stress

The cost of seeking medical treatment is expensive and can drain your finances.

Investing in a medical plan allows you to seek medical services at any time without worrying about your pocket.

Cumulative bonus

When the insured makes no claim on the plan for a year but still pays their premium, they get a cumulative Bonus, which may come as an additional cover.

Moreover, the policy may not give the needed cover in the first year.

The insurer compensates in the following years through premium discounts or a generous bonus or both in some companies.

Cashless services

Most amenities allow for cashless transactions for the medical services provided.

The insured does not have to pay for the services in cash as the insurer pays the facility direct.

In most cases, it is a third-party administrator who pays the bills. 

Pre and Post hospitalization cover

The majority of the insurance companies cover for hospitalization expenses and test and consultation fees under certain conditions.

Other insurers go further to cater for transportation charges.


It is common for most insurance companies to cover for regular check-ups for their clients.

The insured goes for the health check-ups, and the same cashless method is applicable by the insurer.

The contrast between medical and life Insurance

  • Life insurance is a long-term plan, while medical insurance is a short term plan.
  • Life insurance provides coverage throughout your life, and you are not constrained to only a specific expense. It is also given after the death of the policy holder. For medical insurance, it covers hospitalization expenses and other medical treatments. It is only applicable during the lifetime of a person and limited to only medical cover.
  • Life insurance is for a specific period, and after the demise of the policy holder, the policy comes to an end. In medical insurance, the period is not specified, and the insured can renew the policy after every year to continue with the cover.
  • Life insurance policy is like an investment. The money in a life insurance policy will return to you through your beneficiaries. In a medical insurance cover, the amount is not refunded. It comes back to you through the payment of the medical expenses incurred.
  • Life insurance protects the policyholders’ beneficiaries after their demise, while medical insurance protects the insured and their family from illnesses and medical emergencies.