In 2025, life is unpredictable — and medical inflation and family responsibilities are only rising. That’s why understanding the difference between term insurance and health insurance isn’t just smart — it’s essential.
Most people wrongly assume they need only one. But here’s the truth:
👉 You need both.
Let’s break down why with help from Vizzve Finance.
📌 What Is Term Insurance?
A pure life cover that pays a lump sum to your nominee if you pass away during the policy term.
It has no maturity benefit (unless it's a return-of-premium variant).
Cheapest way to secure your family’s financial future.
💡 Example: ₹1 crore cover for a 30-year-old can cost just ₹800/month.
🏥 What Does Health Insurance Cover?
Covers hospitalization, surgery, ICU, daycare procedures, and sometimes OPD
Can include maternity, COVID-19, mental health, and pre/post-hospitalization
Saves you from dipping into savings for medical bills
💡 Example: One emergency surgery can cost ₹2–5 lakhs without insurance.
📊 Term Insurance vs Health Insurance — Key Differences
| Feature | Term Insurance | Health Insurance |
|---|---|---|
| Purpose | Income protection | Medical expense coverage |
| Payout | After death (lump sum) | During illness/treatment |
| Beneficiary | Family/nominee | Policyholder |
| Premium Cost | Lower for high coverage | Higher depending on age/cover |
| Tax Benefit (u/s 80C/80D) | ₹1.5 lakh (80C) | ₹25k–₹1 lakh (80D) |
🚨 Why You Need Both in 2025
Life & Health Risks Are Separate
Term protects your family’s income; health protects your savings.
Medical Inflation Is Real
India's healthcare inflation hovers at 14%. One illness can wipe out your emergency fund.
Post-COVID Reality
The pandemic showed us: job loss + hospital bills = financial disaster without both covers.
Peace of Mind
You sleep better knowing your family is secure, and you’re medically covered.
🤖 How Vizzve Helps You Choose Smartly
💡 Insurance Recommendation Engine: Based on age, income & dependents
📊 Premium Calculator & Comparison Tools
🛡️ Bundled Plans: Combine term + health in one easy monthly EMI
🧾 Tax Saving Insights: Know how to claim and file
💬 Real-time Support for claim process or questions
🔚 Final Thought
Choosing between term and health insurance is like choosing between food and water — you need both to survive financially in 2025.
Let Vizzve Finance help you protect your life and your health — so your dreams (and your family) stay secure, no matter what life throws your way.
❓ FAQs
Q1: Can I take both health and term insurance at once?
✅ Yes, and it’s recommended for full protection.
Q2: Which should I buy first — health or term?
If young and earning, prioritize term early due to low premiums. If family health risk is high, start with health.
Q3: Is insurance enough for medical emergencies?
Insurance + emergency fund = perfect combo. Insurance reduces the blow; savings ensure immediate liquidity.
Published on : 19th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.