Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Is life insurance the same as health insurance? No, one deals with morbidity, which is health insurance and the other deals with mortality, which is life insurance. Health insurance deals with health issues while the insured is alive. Life insurance deals with things after the insured has died.
Founder, Abrams Insurance Solutions, Inc., San Diego, CA
No, life insurance is not the same as health insurance. Health insurance provides coverage for medical expenses if you get sick or injured. Life insurance provides a death benefit for your heirs when you die. Life insurance may provide some living benefits as well as it is a great vehicle to save money in and avoid market risk and income tax.
Life insurance is a mortality insurance product and health insurance is a morbidity insurance product. Life insurance is not the same as health insurance. Life insurance and annuities are insurance mortality products. Health insurance, disability insurance and long term care insurance are morbidity insurance products. Two different actuarial constructs.
Life insurance pays another person, who is called the "beneficiary", when the insured person dies. Health insurance pays for the health care of the insured person himself.
So unless life insurance has living benefits that will pay money directly to the insured person in certain situations, life insurance is mainly taken out for the welfare of someone else who would suffer financially upon the death of the insured person. Health insurance is taken out for the welfare of the insured person himself.
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So unless life insurance has living benefits that will pay money directly to the insured person in certain situations, life insurance is mainly taken out for the welfare of someone else who would suffer financially upon the death of the insured person. Health insurance is taken out for the welfare of the insured person himself.