With so many different types of insurance on the market, people often wonder just how much to have. Not only that, but money matters, and with most of us being budget-conscious these days,
no-one wants to spend more than they have to, yet don’t want to be under-protected either.

As distinctly different products, Life Insurance and Health Insurance deliver different types of coverage, so if you’re looking to completely protect yourself in the interest of providing for your loved ones, these complementary coverage products should be two insurances at the top of your list.

Here are a few reasons why you should buy life insurance even if you already have health insurance:

The two are different products with different objectives

The first thing to bear in mind is that health insurance and life insurance are two distinctly different products with unique coverages. They complement each other and provide a comprehensive coverage approach.

Health insurance is a type of insurance policy that covers medical expenses in the event of an illness or injury. It is designed to help protect individuals from covering medical expenses out of pocket, as well as providing access to medical services that would otherwise be too expensive.

Life insurance on the other hand, provides financial protection in the event of death. It is designed to provide funds to pay for funeral costs, debt settlement, and other financial impact resulting from an untimely death. Life insurance also provides security and peace of mind, helping to ensure that your family will remain financially secure should a tragedy happen to you.

Life insurance provides financial protection in the event of death

Your health insurance may provide financial assistance when you’re living, but a life insurance policy can provide coverage for any other financial impacts in the event of your passing, as well as some living events, such as the contracting of a critical or terminal illness. Death benefits include paying for funeral costs and settling outstanding debts. Life insurance helps to provide families with financial security, leaving them to focus on handling their loss.

Life insurance can provide a secure financial future for your family

Your ability to provide financial support for your loved ones is an important part of keeping them financially safe. Should you die prematurely, life insurance can help to ensure that your family remains secure.

Life insurance can provide funds to support your children as they grow

Life insurance can provide crucial funds to help your children with their secondary education, and/or attend university or other higher education later. It can also help fund their future as adults, such as assisting with wedding expenses or a deposit to obtain their first home or car.

Life insurance helps to minimize estate taxes

Purchasing life insurance can help to reduce estate taxes and ensure that financial assets are protected.

It helps secure your retirement funds

In some cases, life insurance policies can be used to help you build funds to provide security for your retirement. Policies with a unit-linked or investment element enable premiums paid to be invested into funds of your choice, with returns on investment possible subject to performance of the funds selected. This can be a great way to supplement any pension and form part of a holistic approach to retirement planning.

Life insurance policies can keep your business running

If you are a business owner, a life insurance policy can help to provide continuity of operations in the event of your death, meaning your business becomes a legacy to leave to your loved ones and a chance to keep a treasured business “in the family.”

It’s more cost-effective than other forms of investments

In many cases, unit-linked life insurance can be more cost-effective than stocks and other investments. Your insurance broker will be able to provide additional insight and guidance into which type of life policy with an investment element is right for you and your needs.

It helps provide coverage for other financial risks

Life insurance policies can also provide coverage for other risks such as accidental death or illness caused by a critical illness. This helps to provide further protection in the event of an unforeseen event such as diagnosis of an illness like cancer, or heart disease.

Final Thoughts

Ultimately, life insurance is an important form of financial protection that everyone should consider, regardless of whether or not they already have health insurance. A life insurance policy can provide financial peace of mind in the event of an untimely death, helping to protect your loved ones from financial hardships in the future.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.