What is the difference between life insurance and health insurance?

Life insurance and health insurance are two very different types of insurance. Life insurance is designed to protect your financial future in the event of your death. It pays out a lump sum of money to your designated beneficiaries upon your passing. This money can be used to cover any final expenses, debts, or can be used as a financial legacy for your family. Health insurance, on the other hand, is designed to help cover the cost of medical care due to illness or injury. Health insurance can be purchased through an employer or the state and it pays the medical provider directly, leaving you with a reduced bill. It may also cover preventative care such as regular checkups and tests. The main difference between life insurance and health insurance is that the purpose of life insurance is to provide financial protection for the deceased person’s family, while health insurance is designed to cover medical expenses. Life insurance can be purchased as a one-time fee, while health insurance is typically an ongoing expense, with premiums paid every month. Overall, life insurance and health insurance are two important pieces of a sound financial plan and should be evaluated and reviewed every year. In Maryland, it is important to review all insurance products for adequacy and to ensure that you are fully protected against any unexpected financial hardship.

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What is the difference between life insurance and health insurance?

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