Life insurance and health insurance – what’s the difference?

2 MIN READ September 29, 2021
You might have your house, car and contents insurance sorted, but when it comes to insuring yourself, it might all seem a bit too complicated. There are many different types of personal insurance, but most of those will fall under the bigger umbrellas of life…

Health insurance

Health insurance is there to cover your medical bills for things like surgery on a claim basis. It helps you to get faster and more affordable access to the medical treatment you need if you fall sick. Not only does health insurance cover your medical bills, but it can also help you to make ends meet if your illness means that you can’t work for a period of time.

Many people don’t bother with health insurance and prefer to go through the public system here in New Zealand, but this can often mean long waits and limited access to certain medications – not ideal if you fall severely ill.

There are many different types of policies that fall under health insurance, including trauma cover, income protection cover and disability cover.

Having health insurance in place means that you can have more choice and faster treatment when you need it most.

Life Insurance

Life insurance is designed to pay out a lump sum should you unexpectedly pass away or be diagnosed with a terminal illness. This type of cover is important to have in place if you have dependents who rely on your income or care.

It’s all about protecting the financial future of your loved ones. Your life insurance policy should cover your debts, funeral expenses, and any living costs your family might need once you are no longer around.

The two most common types of life insurance are term life and whole-of-life cover. With term life insurance, you’re paid out the agreed amount if you’re diagnosed with a terminal illness or pass away within the period of time set out in your policy. Whole-of-life insurance means your cover lasts for life as long as you continue to pay the premiums – this is often more expensive than term life policies though.

Working together

Because health insurance and life insurance serve different purposes, they work very well together to ensure you and your loved ones are covered when you need it.

If you want to know more about how life and health cover can help you to protect you and your family, get in touch with our team to book in a free, no-obligation review. Our expert advisers will take a look at your situation and recommend the best cover for your situation and your budget.


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