What the difference between Health and Life Insurance?

Simply put,

Health insurance pays for medical costs, known amounts of bills.

It only reimburses what is charged from hospitals and/or outpatient facilities.

Life insurance (including disability & CI types) take care of living expenses & outstanding liabilities of you or your family in those specific events. Taking up a life insurance policy immediately creates an estate for your family in the event you are gone and will be distributed to your dependants. Dependants would include your children, parents, spouse or anyone finanically dependant on you as a source of income.

Generally for health insurance, it covers your medical bill up to a reimbursement basis. In Singapore, the common ones are MediShield Life, and Private Integrated Shield Plan.

More Details:

Is MediShield Life enough in Singapore?

Integrated Shield Plan Singapore: A Starter's Guide

On the other hand, life insurance issues a payout as soon as the conditions are fulfiled. Generally, life insurance coverage can be split into three life's major event,

1. Pre-Mature Death

2. Total & Permanent Disability

3. Critical Illness

For this purpose, we will usually look at a term insurance policy or a whole life insurance policy:

More Details:

What is a Term Insurance Policy

What is a Participating Whole Life Insurance Singapore

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