We know how confusing it can be to understand how insurance works, and more than that, to know in detail the difference between different types of insurance, such as health and life insurance. If you want to know more about them, you have come to the right place.
An insurance is a guarantee that belongs to an insured in the event of a loss. The insurance financially covers the risks agreed in a legal contract called an insurance policy. There are many types of insurance (health, life, vehicle, etc.). It is important to recognize the differences between health insurance and life insurance, in case you need to take out an insurance policy in Ecuador.
Health insurance
Health insurance financially covers the medical expenses of an insured. Insurance companies offer different plans to cover specific areas of health or guarantee comprehensive medical care.
A health policy can cover maternity, illness and injury. Health insurance establishes minimum amounts of coverage for periods of time; For example, an insurance policy can cover emergency medical expenses when the insured was in an accident or suddenly became ill.
Insurance companies configure plans for different groups, according to their needs:
For example, we have insurance in which seniors can enroll, in the same way we have insurance that enrolls newborns. We also have a major medical expense and cancer insurance plan dedicated to covering the medical expenses of cancer patients.
Family plans are in place to guarantee coverage for family members. The prices of medical assistance insurance vary in relation to aspects such as: age of the insured.
The above are risk factors that insurance companies take into account to establish the amount of coverage and payment fees.
It is important to note that you can contract a national insurance policy in Ecuador, whose coverage is limited exclusively to medical expenses incurred within the country.
However, in Ecuador there is also an international health insurance service that, in addition to providing the service to the insured within their own country, also guarantees medical care outside of Ecuador.
Life insurances
As can be seen, health insurance is limited to the medical care area. For its part, the life insurance policy has different purposes.
In general, the main objective of life insurance is to protect the family once the insured dies. When you purchase life insurance, the beneficiaries will receive the contracted amount in the event of the death of the holder.
Generally, life insurance is intended to financially insure the spouse, children or family. However, the beneficiaries do not necessarily have to be family.
Life insurance also guarantees beneficiaries in case the insured suffers total disability and some policies offer double sums when the cause of death of the insured is accidental. They can contemplate the guarantee of funeral expenses and the cancellation of the debts of the deceased.
At Tecniseguros, we also offer different savings alternatives for your retirement or education.
Differences in choosing between health insurance and life insurance
If you want to guarantee health care for yourself and your family, you need health insurance. These insurances allow you to have financial support throughout the year for current medical expenses such as medical consultations, operations, etc.
You should be aware that health insurance premiums increase with risk factors. Your health insurance policy will have a higher value if you are in the elderly, compared to someone in their 20s to 30s, because the insurance company considers that you are more likely to get sick than someone younger.
On the other hand, if what you need is to guarantee the well-being of your family after your death, or to save for your education or retirement, you can choose for life insurance. It depends on the policy you choose, your beneficiaries will be free of debt and live for a certain time thanks to the economic support of the policy.
With this information it is enough for you to recognize the differences between health insurance and life insurance, knowing, in summary, that the former is for current medical expenses and the latter to guarantee financial coverage for your loved ones in the event of your death. and also to be able to save for a better tomorrow.
