Sciencelovers - Insurance products are quite popular with the public as a way to prepare for the future. In addition, insurance is also usef...
Sciencelovers - Insurance products are quite popular with the public as a way to prepare for the future. In addition, insurance is also useful when we need sudden costs for an event.
This is where the difference between life insurance and health insurance lies in the function that is given to policyholders as customers.
Unfortunately, there are still quite a lot of people who do not understand that there are several types of insurance products.
This ignorance results in people's reluctance to join the existing insurance program even though it can provide considerable benefits.
Well, this time, we will discuss what is the difference between life insurance and health insurance products
Difference between Life Insurance and Health Insurance
There are at least 2 types of insurance products that are most often followed by the general public, namely life and health insurance.
Although the insured is relatively the same, namely yourself, life insurance products have several differences with life insurance, namely as follows.
1. Type of Risk Covered by Insurance
Judging from the types of risks covered by life and health insurance, they are already different. The customer or life insurance policy holder will get dependents for certain risks they experience, namely disability caused by accidents and death. With the life insurance, the financial condition of the policyholder or his family can be helped even though the source of income is lost due to the incident.
In contrast to health insurance where customers will get coverage when experiencing health problems and must get treatment. The illness in question also includes those caused by accidents.
The insurance will cover the cost of hospital treatment undertaken by the customer. However, you should read carefully before joining a health insurance product to find out what types of costs are covered by the policy.
2. In terms of insurance benefits
Another difference between health insurance and life insurance is in the benefits obtained by the customer as the policy holder. As explained a little earlier that the two insurances cover different types of risks.
Well, life insurance products will be paid by the policy to the heirs when the customer dies. So it can be said that life insurance provides benefits as financial protection to the heirs of the policy holder.
Meanwhile, in health insurance, the beneficiaries are the people who are the insured according to the policy. Usually the insured is also the policyholder himself. Benefits will be obtained when the insured has to undergo health care in a hospital as compensation for costs that have been incurred by the customer.
3. Procedure for making a claim
The methods and procedures for insurance claims on the two types of products are also different. Because the beneficiaries of life insurance are heirs, claims are also made by them by completing the required documents.
When the customer dies, the heirs must submit a life insurance claim accompanied by the policy to the insurance company.
After that, a checking and verification process of data and insurance claims will be carried out to the heirs after the submission is approved. Then how to make a claim on health insurance?
Claims on health insurance can be made through 2 systems, namely cashless and reimbursement. The cashless system will be directly paid by the insurance company to the hospital where the customer is being treated.
As for using the reimbursement system, the customer will get compensation for treatment costs and medicines covered by the insurance.
Payment of claims is a replacement for maintenance costs from insurance against money that has been issued by the customer.
Those are the 3 differences between life and health insurance that must be understood.
Based on the differences between life insurance and health insurance as mentioned above, people can more easily choose which one best suits the needs of customers who use insurance.
