Which is Best for Old Age: Life Insurance or Health Care Coverage?

When it comes to insurance coverage for senior citizens, making an informed choice is not always easy. Nevertheless, if used wisely, life insurance can also act as retirement plans for senior citizens.  Both these types of insurances have their own set of benefits. So, which one should senior citizens choose? Life insurance, wherein your family will be financially secure in your absence, or health insurance wherein you will have a strong financial backup to meet medical costs when your health doesn’t support you? Read more to find out!

Understanding life insurance and health insurance

To make a well-informed decision, you must first understand what life insurance and health insurance are. For a brief summary, each type of insurance serves a completely different purpose and offers different coverage. Life insurance makes sure to pay out a death benefit to your beneficiaries in the case of premature death. This is because the death benefit is sufficient to replace the future income loss, as well as cover the expenses and obligations outstanding such as funeral costs, medical expenses, and other debts. This gives the family continuity and gets hold of their finances so they do not struggle in the event after their death. 

Health insurance on the other hand helps pay medical expenses such as doctor’s visits, hospital stays, medications, tests, and procedures. This will eventually help ensure that people can afford their medical expenses and stay healthy. There really is a definite comfort in knowing that even if your health takes an unexpected turn, you and your family are covered when in times of need. The idea here is to empower you financially to be able to afford quality treatment when the cost of treatments is soaring by the day.

The reality there is that a lot of people genuinely need both types of protection, especially if they have dependents. Always remember that insurance needs can change dramatically during different life stages. What might seem essential for a parent might not be so important for a recent college graduate or a retiree. 

Which insurance should a senior citizen buy?

Old age comes with its share of problems, health, and dependency being the major ones. But, with sufficient life insurance and health insurance cover, you can not only take care of your health but also be financially independent. 

Given that there are several benefits of life insurance and health insurance, it is wise to opt for both. If it is quite difficult to afford the premium of both the plans, then the best thing is to arrive at your suitable cover amount and buy just that. For example, financial experts believe that you must have a life cover equivalent to ten times your current annual income. 

To sum it up, life insurance as well as health insurance, are essential must-haves. Choosing an adequate cover for both becomes easier if you assess your health state, responsibilities, and other factors.