Reader’s Question:

I have a life insurance policy here in California, is that the same as a health insurance policy?

Oliver

Bakersfield, CA

Although there may be accidental similarities, life insurance and health insurance are two completely different things. Life insurance policies are acquired for the sole reason of providing your beneficiaries financial compensation or a level of monetary support in the event that you die. Health insurance on the other hand, guarantees financial support (either partially or fully) in the event that you are hospitalized or otherwise in need of medical care.

It is not uncommon for a lot of people to confuse one from the other, which goes to show that there is a huge need to educate everyone about health and life insurance.

So if you die in an accident or become totally disabled, life insurance would pay you or your surviving beneficiaries the “Face Value” or lump sum benefits as stated in the life insurance policy that you bought there in California. If you get need medical treatment, needs to undergo surgery or an operation or is hospitalized for an extended amount of time, health insurance would cover the expenses for you.

It is important that people are aware of the distinct difference so that you will know if you have the appropriate kind of coverage that you need, you don’t want to end up in a situation where you are expecting your life insurance to pay medical bills. You can get more information about the kind of policy that you have there by calling-up your insurance broker or gathering information Online.

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