Money9 Helpline | Terms insurance vs health insurance: Choosing between the two
Both health and life insurance are essential in protecting an individual and the family from financial ruin. But it is also important to choose the right insurance cover to avail maximum benefit.
Money9 Helpline has time and again stressed the need of buying an insurance cover, especially in times of covid crisis. Both health and life insurance are essential in protecting an individual and the family from financial ruin. But it is also important to choose the right insurance cover to avail maximum benefit.
In this edition of the Money9 helpline, Naval Goel, founder, and CEO, PolicyX joins Priyanka Sambhav to explain everything about insurance.
Naval answered various questions put up by the helpline callers on what type of insurance policies they should prefer based on their finances and investment objective.
Here are some queries:
Stuti Pathak, Pune: My mother and father are aged 50 and 52 years respectively. What is the best insurance coverage for them?
Naval: I am assuming she is asking about health insurance since it is covid times. There are various good health insurance plans provided by companies like Star, Religare. I will suggest you buy a family floater insurance cover of Rs 5 Lakh or Rs 10 lakh. Since your parents must be in their 50s it will be very easy for them to buy health insurance cover from these companies.
Manish Kale, Mumbai: I recently started my career and don’t have an insurance policy. What kind of insurance policy should I choose first- life, term, or health insurance?
Naval: So basically the purpose of life insurance is to invest and grow one’s finances, while term insurance serves the purpose of covering one’s risk. Term insurance will secure a family’s finances in case the person passes away. Health insurance is specifically for protecting your and your family’s health. So you should first prefer to buy a health insurance cover and then consider buying life insurance plans.
Goutam Mukherjee: I am retired while my wife is in her early 50s. We have a health cover of Rs 5 lakh and a life insurance policy with LIC. Should we buy new health or life insurance policy amidst the growing Covid-19 cases?
Naval: I will suggest you buy a health cover of Rs 10 lakh. You can also buy a term policy from HDFC, LIC, etc
To know more watch the full episode:
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