Term Insurance vs Health Insurance

Understanding the Key Differences and Why You Need Both

Sampurn Insurance Advisor 2026-01-01 5 min read

बीमा की दुनिया में, "Term Insurance" और "Health Insurance" दो सबसे महत्वपूर्ण प्रकार के बीमा हैं। लेकिन कई लोग इन दोनों में भ्रमित रहते हैं। इस गाइड में हम समझेंगे कि ये दोनों क्या हैं, कैसे अलग हैं, और आपको दोनों की जरूरत क्यों है।

Quick Comparison / तुरंत तुलना

Feature Term Insurance Health Insurance
Purpose Income replacement after death Medical expense coverage
Beneficiary Family (after policyholder's death) Policyholder (during illness)
When it pays On death during policy term On hospitalization/illness
Coverage Amount ₹50 lakh - ₹10 crore typically ₹3 lakh - ₹1 crore typically
Premium (indicative) ₹500-2000/month for ₹1 crore ₹500-1500/month for ₹5 lakh
Tax Benefit 80C (premium), 10(10D) (payout) 80D (premium)

What is Term Insurance? / टर्म इंश्योरेंस क्या है?

Term Insurance एक प्रकार का Life Insurance है जो निश्चित अवधि (term) के लिए सुरक्षा प्रदान करता है।

Simple Definition: यदि पॉलिसी अवधि के दौरान पॉलिसीधारक की मृत्यु हो जाती है, तो नामांकित व्यक्ति (nominee) को बीमित राशि (Sum Assured) मिलती है।

Term Insurance Key Features:

  • Pure Protection: No maturity benefit (if you survive, no payout)
  • Low Premium: Cheapest form of life insurance
  • High Cover: ₹1 crore cover at ₹10,000-15,000/year
  • Income Replacement: Replaces your income for your family
  • Debt Coverage: Can cover home loans, education loans

Who Needs Term Insurance?

  • ✅ Every earning member of the family
  • ✅ People with dependents (spouse, children, parents)
  • ✅ Those with loans (home loan, car loan)
  • ✅ Single income families
  • ✅ Business owners (keyman insurance)

Popular Term Insurance Plans:

  1. HDFC Life Click 2 Protect
  2. ICICI Prudential iProtect Smart
  3. Max Life Smart Secure Plus
  4. LIC Tech Term
  5. Tata AIA Sampoorna Raksha

What is Health Insurance? / स्वास्थ्य बीमा क्या है?

Health Insurance आपके चिकित्सा खर्चों को कवर करता है - अस्पताल में भर्ती होने से लेकर सर्जरी, दवाइयां और जांच तक।

Simple Definition: जब आप बीमार पड़ते हैं या अस्पताल में भर्ती होते हैं, तो बीमा कंपनी आपके मेडिकल बिल का भुगतान करती है।

Health Insurance Key Features:

  • Hospitalization Cover: Room rent, ICU, surgery, medicines
  • Pre & Post Hospitalization: 30-60 days before, 60-180 days after
  • Cashless Treatment: No out-of-pocket payment at network hospitals
  • Daycare Procedures: Dialysis, chemotherapy, cataract, etc.
  • Annual Renewability: Renew every year, lifelong

Who Needs Health Insurance?

  • ✅ Everyone - from age 0 to 100
  • ✅ Families with children
  • ✅ Parents and senior citizens
  • ✅ Employees (even with corporate insurance)
  • ✅ Self-employed professionals

Popular Health Insurance Plans:

  1. Star Health Family Health Optima
  2. Care Health (Formerly Religare)
  3. HDFC ERGO Optima Secure
  4. Niva Bupa (Max Bupa)
  5. New India Assurance Mediclaim

Detailed Comparison

1. Purpose & Protection

Aspect Term Insurance Health Insurance
Protects Against Financial loss due to death Medical expenses due to illness
Who Benefits Family/Nominee Self/Covered members
When You Need It After your death During your illness

2. Coverage Amount Calculation

Term Insurance - How Much?

Rule of thumb: 10-15 times annual income

Example: Annual income ₹6 lakh → Term cover should be ₹60 lakh to ₹90 lakh

Also consider: Outstanding loans + Children's education + Spouse's financial needs

Health Insurance - How Much?

Rule of thumb: ₹10-20 lakh minimum for family

Factors: City (metro cities need more), Family size, Age of members, Pre-existing conditions

3. Premium Comparison

Profile Term (₹1 Cr, 30 yrs) Health (₹5 L Family)
Age 25 ₹8,000 - 10,000/year ₹8,000 - 12,000/year
Age 30 ₹10,000 - 14,000/year ₹10,000 - 15,000/year
Age 35 ₹14,000 - 20,000/year ₹14,000 - 20,000/year
Age 40 ₹20,000 - 30,000/year ₹18,000 - 28,000/year

*Indicative premiums. Actual premiums depend on health, habits, and insurer.

4. Tax Benefits

Tax Aspect Term Insurance Health Insurance
Section 80C 80D
Max Deduction (Self) ₹1.5 lakh (combined 80C limit) ₹25,000
Additional (Parents) Not applicable ₹25,000 - 50,000
Senior Citizen (Self) Same as above ₹50,000
Payout Taxation Tax-free (10(10D)) Not applicable

Do You Need Both? / क्या दोनों जरूरी हैं?

Answer: YES - आपको दोनों चाहिए!

Term Insurance और Health Insurance अलग-अलग जोखिमों से बचाते हैं। एक दूसरे का विकल्प नहीं है।

Why Both are Essential:

Scenario Only Term Insurance Only Health Insurance Both
You get hospitalized ❌ No coverage ✅ Bills covered ✅ Bills covered
You pass away ✅ Family gets money ❌ No payout ✅ Family gets money
Critical illness diagnosed ❌ No help (unless CI rider) ✅ Treatment covered ✅ Treatment + CI payout

Ideal Insurance Portfolio

For a 30-year-old earning ₹8 lakh/year with spouse and 1 child:

Insurance Type Recommended Coverage Approx. Premium
Term Insurance ₹1 crore, 30-year term ₹12,000/year
Health Insurance (Family) ₹10 lakh floater ₹18,000/year
Critical Illness (Optional) ₹25 lakh ₹8,000/year
Personal Accident (Optional) ₹50 lakh ₹3,000/year
Total ₹38,000 - 41,000/year

This translates to approximately ₹3,200-3,400/month for comprehensive protection - less than what many spend on mobile bills!

Common Mistakes to Avoid

  1. Relying only on employer insurance - Not portable, ends when you leave
  2. Delaying purchase - Premium increases with age
  3. Underinsuring - ₹5 lakh cover is not enough in today's times
  4. Buying investment plans instead of term - Endowment/money-back give low cover
  5. Not disclosing medical history - Claims can be rejected

Contact Sampurn Insurance

हम आपकी जरूरतों के अनुसार सही बीमा योजना चुनने में मदद करते हैं:

  • Phone: +91-9425051306
  • Offices: Indore & Dhamnod
  • Products: Term Insurance (HDFC Life, ICICI, LIC) + Health Insurance (Star, Care, HDFC ERGO)

Free Consultation: हम आपके बजट और जरूरतों के अनुसार सही combination suggest करेंगे।

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