How does life insurance differ from health insurance?

Life insurance is designed to provide financial protection to beneficiaries after the policyholder's death, typically in the form of a lump sum payment. This financial support can help cover various expenses that may arise, such as funeral costs, outstanding debts, or lost income, allowing dependents to maintain their standard of living in the absence of the insured.

On the other hand, health insurance primarily covers the medical expenses incurred during an individual's lifetime. This includes a range of services such as doctor visits, hospitalizations, surgeries, and preventive care. Health insurance is focused on managing the cost of healthcare to ensure that individuals can access necessary medical treatment without incurring overwhelming financial burdens.

Understanding this distinction clarifies the purpose and function of each type of insurance. Life insurance is about providing financial security after death, while health insurance is concerned with paying for care during life.