Life insurance is a contract between the insurance policyholder and the insurer where the insurer guarantees payment of death benefit to the named beneficiaries upon the death of the person who is insured. Health insurance on the hand is coverage plan that protects people from medically related risks. This may include physical injuries, serious illnesses or chronic diseases.
This types of insurance are essential hence every person is supposed to be insured, they protect you together with your family by taking care of the expenses that may arise from the unexpected illnesses and other health risks. Nowadays there are many life and health insurance companies hence when looking for one you choose the one that will fulfill your needs and is also affordable.
A life insurance has three components which include the death benefits, cash value, and premiums. Death benefit is the amount of money given as a guarantee by the insurance company to beneficiaries that are in the policy, the insured is the one who chooses his or her death benefit amount. In premium, statistics are used to determine the policy maintenance fees, amount required to cover mortality costs and the administrative costs.
Both life and health insurance are beneficial because they safeguard you together with your family, a health insurance covers you with the consultation fees and in case you are supposed to go to a specialist where there is high consultation fees your policy will cover you with everything. Sometimes you can get injured or have a very serious illnesses, when you have a health insurance policy your insurer will cater for the hospital expenses including , medicines catering, laundry, laboratory tests and also treatment.
You can get ambulance benefit when you become insured hence whenever there is any danger relating to health the insurance company will provide an ambulance to take you to the hospital. With health insurance you will get a lot of advantages, for example, maternity and newborn care.
Life insurance unlike other types of financial instruments enjoys a favorable tax treatment because death benefits are income free and may also be estate tax free when the policy is properly owned.
Here are important tips which will help you to get the best heal and life insurance company. Look for an insurance company that is reputable, don’t just select an insurance company because of a good name because you may end up being scammed. Asking is very crucial when cooking for the best insurance company, ask your friends because they may recommend you to go the best insurance company because of their knowledge concerning them. You can also research online or read in books the best insurance companies around you.
The above tips will help you to avoid any problems from arising when you are looking for these companies and you will end up getting the best company.