Often there is some confusion as to the difference between life insurance and medical aid cover. There is a very significant difference, but they are both something that every person should have.
A life insurance policy is designed to ensure that your family and loved ones are financially secure after your death. A monthly premium is paid to the insurance company and then a lump sum of money is paid to your beneficiary after you die. There are several different types of death benefit policies and the prices can vary greatly depending on many things, including the amount of coverage you have. While life insurance is often expensive, like any other major investment, you can shop around for the best price by getting life insurance quotes from several different providers. This type of insurance doesn’t directly benefit you unless you have a specific kind of policy, but it gives you peace of mind knowing that your family will be taken care of after you are gone.
Medical aid cover is a type of insurance that pays all or a part of any medical expenses while you are living. You pay a monthly premium and when you need medical care of any kind, at least part of the bill will be paid by the insurance company. Medical care is often quite expensive and even basic medical coverage can save thousands of dollars that would otherwise come out of your pocket. This type of insurance is often much more expensive than life insurance because while life insurance pays only once (after your death) medical aid cover will be used many times during your life. Much the same as life insurance, quotes for medical aid coverage are available so you can shop around for the best prices.
Another type of insurance that isn’t heard about often, but is becoming more popular, is disability insurance. It is often used in combination with medical aid cover. Like medical aid cover and life insurance, you pay a monthly premium and if you become unable to work due to injury of illness, disability insurance pays a certain percentage of your normal wages until you can return to work. Like medical aid cover and life insurance, quotes for this type of insurance are available online and through insurance agencies. Also like other types of insurance, premiums can greatly vary so it’s always wise to assess your needs before you begin looking for coverage.
All of these insurance types are meant to protect either you or your family and having them can keep you and your family from experiencing financial hardships in the event of illness, injury, or death.