{"id":3049,"date":"2021-08-16T17:25:02","date_gmt":"2021-08-16T09:25:02","guid":{"rendered":"https:\/\/www.pacificprime.hk\/blog\/?p=3049"},"modified":"2021-08-16T17:26:45","modified_gmt":"2021-08-16T09:26:45","slug":"a-quick-guide-to-health-insurance-vs-life-insurance","status":"publish","type":"post","link":"https:\/\/www.pacificprime.hk\/blog\/a-quick-guide-to-health-insurance-vs-life-insurance\/","title":{"rendered":"A quick guide to health insurance vs. life insurance"},"content":{"rendered":"<p>\u201cGet access to better health services\u201d. \u201cSafeguard against financial losses\u201d. \u201cProtect you and your loved ones\u201d.<\/p>\n<p>You\u2019ll often hear statements like these in relation to health and\/or life insurance. If you\u2019ve landed on this <a href=\"https:\/\/www.pacificprime.hk\/\" target=\"_blank\" rel=\"noopener\">Pacific Prime Hong Kong<\/a> article, then chances are you\u2019re not clear on what the two terms mean and what the differences between them are, nor will you have context for the aforementioned statements. Arm yourself with knowledge today so that you can make prudent and financially-savvy decisions.<\/p>\n<div class='code-block code-block-1' style='margin: 8px 0; clear: both;'>\n<p><a href=\"https:\/\/www.pacificprime.hk\/compare-quotes\/step-one\/?campSource=PPHK-Blog&utm_source=blog&utm_medium=content_banner&utm_campaign=Blog_Banner&utm_content=single\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-1644\" src=\"https:\/\/i0.wp.com\/www.pacificprime.hk\/blog\/wp-content\/uploads\/2022\/12\/WP-Banner-revamp-final-20221207_1.-Single-final.jpg?resize=700%2C303&#038;ssl=1\" alt=\"Individual Health Insurance Plans\" width=\"700\" height=\"303\" data-recalc-dims=\"1\" \/><\/a><\/p><\/div>\n\n<h2>What is health insurance?<\/h2>\n<p>A health insurance plan is designed to cover medical expenses incurred owing to illnesses and\/or accidents. Those who secure the health insurance plan (known as \u2018policyholders\u2019) from an insurance provider make monthly or annual payments (known as \u2018insurance premiums\u2019). While they are insured, the policyholder can have their medical costs borne by the insurance provider.<\/p>\n<p>But, it\u2019s not always as simple as that. Oftentimes, the insurance provider will add a \u2018deductible\u2019. Essentially, this is the amount that the policyholder will have to pay out of pocket before the insurance provider starts paying. What\u2019s more, the plan may have \u2018exclusions&#8217;. These are things that the insurance provider will not cover &#8211; say for instance, &#8216;pre-existing conditions\u2019 or health conditions that the policyholder has before securing the health insurance plan.<\/p>\n<p>Check out this video on the 8 most common health insurance exclusions:<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/9eVJ-jkxZGs\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h3>Types of health insurance coverage:<\/h3>\n<p>As a minimum, health insurance plans offer inpatient coverage. It covers the policyholder if they are admitted overnight at a hospital. On the other hand, outpatient insurance covers the policyholder if they don\u2019t need to be admitted overnight at a hospital. In addition to outpatient insurance, there are many other \u2018riders\u2019 or optional extras that policyholders can attach to their health insurance plan. For example, dental, vision, and maternity coverage.<\/p>\n<p>Read more about <a href=\"https:\/\/www.pacificprime.hk\/blog\/inpatient-vs-outpatient-insurance-what-does-it-cover-and-what-is-the-difference\/\" target=\"_blank\" rel=\"noopener\">inpatient vs. outpatient insurance<\/a> or check out this video on the same topic:<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/0Zgm-f1BYRg\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>What is life insurance?<\/h2>\n<p>Unlike a health insurance plan, a life insurance plan doesn\u2019t cover medical expenses owing to illnesses and\/or accidents. In exchange for the premiums that the policyholder pays, the insurance provider will pay a lump sum amount (known as \u2018death benefit\u2019) to the policyholder\u2019s beneficiaries or the person(s) designated by the policyholder when the policyholder dies. The beneficiaries can use the money for whatever purpose they choose:<\/p>\n<ul>\n<li>Paying everyday bills<\/li>\n<li>Paying a mortgage<\/li>\n<li>Paying for a child to go through college<\/li>\n<li>Etc.<\/li>\n<\/ul>\n<h3>Types of life insurance coverage:<\/h3>\n<p>Not only is term life insurance the most affordable type of life insurance, but it is also the most popular type of life insurance sold. It provides coverage for a certain amount of time. Typical choices are policy lengths of 10, 15, 20, 25 or 30 years. If the policyholder passes away within the term of their policy, their beneficiaries can make a claim and receive the death benefit money.<\/p>\n<p><strong>Note<\/strong>: It may be possible to renew the coverage in increments of one year (known as guaranteed renewability) once the term of the policy expires.<\/p>\n<p>There is also permanent life insurance, which provides lifelong coverage. It\u2019s typically more expensive than term life insurance because it can last for the duration of one\u2019s entire life. In addition to paying a death benefit to beneficiaries, permanent life insurance usually also builds cash value. The cash value earns a fixed interest rate, and the policyholder can borrow against it. There are several varieties of permanent life insurance.<\/p>\n<h2>What is the difference between health insurance and life insurance?<\/h2>\n<p>To recap, here are the key differences between health insurance and life insurance:<\/p>\n<table style=\"height: 710px;\" border=\"1\" width=\"473\" cellpadding=\"2\">\n<tbody>\n<tr>\n<td><\/td>\n<td><strong>Health insurance<\/strong><\/td>\n<td><strong>Life insurance <\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>What is it?<\/strong><\/td>\n<td>Insurer pays for policyholder\u2019s healthcare and medical treatment<\/td>\n<td>Insurer pays lump sum amount after the policyholder dies<\/td>\n<\/tr>\n<tr>\n<td><strong>Who benefits?<\/strong><\/td>\n<td>Policyholders can receive medical treatment paid for by the insurer, according to the terms and conditions of the policy.<\/td>\n<td>Lump sum is paid to the beneficiary when the policyholder dies. Loans against the cash value are paid to the policyholder.<\/td>\n<\/tr>\n<tr>\n<td><strong>When is the payout?<\/strong><\/td>\n<td>Payout occurs when the insurer receives a claim. In many cases, the healthcare provider can also bill the insurer directly.<\/td>\n<td>Payout occurs when the policyholder dies. Loans against cash value policies are paid out after the loan has been processed.<\/td>\n<\/tr>\n<tr>\n<td><strong>How much is the payout?<\/strong><\/td>\n<td>Payout is the cost of medical service up to the max benefit for each service, as agreed in the policy. The money is used for medical care.<\/td>\n<td>Payout depends on the policy and the amount will be listed in the policy. The money can be used in any way.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2>Dive into the world of insurance with Pacific Prime Hong Kong today!<\/h2>\n<p>While we\u2019ve explored the basics of health and life insurance, there\u2019s still so much more to uncover. As a global health insurance brokerage, <a href=\"https:\/\/www.pacificprime.hk\/\" target=\"_blank\" rel=\"noopener\">Pacific Prime Hong Kong<\/a> has a number of educational resources including <a href=\"https:\/\/www.pacificprime.hk\/guides\/\" target=\"_blank\" rel=\"noopener\">guides<\/a>, <a href=\"https:\/\/www.pacificprime.hk\/blog\/\" target=\"_blank\" rel=\"noopener\">articles<\/a>, <a href=\"https:\/\/www.pacificprime.com\/resources\/pacific-prime-video\/\" target=\"_blank\" rel=\"noopener\">videos<\/a>, and more. Feel free to check them out. Alternatively, you can also consult us. Whether you\u2019d just like to learn more or <a href=\"https:\/\/www.pacificprime.hk\/health-insurance-plans\/\">secure an insurance plan<\/a>, you\u2019re more than welcome to reach out to our highly-trained insurance advisors.<\/p>\n<p>Rest assured, you\u2019ll get impartial advice, <a href=\"https:\/\/www.pacificprime.hk\/compare-health-insurance\" target=\"_blank\" rel=\"noopener\">a tailored plan comparison<\/a>, and<a href=\"https:\/\/www.pacificprime.hk\/compare-quotes\/step-one\/\" target=\"_blank\" rel=\"noopener\"> a no-obligation quote<\/a>.<\/p>\n<p><a href=\"https:\/\/www.pacificprime.hk\/contact-us\/\" target=\"_blank\" rel=\"noopener\">Contact us<\/a> today!<\/p>\n<div class='code-block code-block-6' style='margin: 8px 0; clear: both;'>\n<p><a href=\"https:\/\/www.pacificprime.hk\/compare-quotes\/step-one\/?campSource=PPHK-Blog&utm_source=blog&utm_medium=cta_banner&utm_campaign=Blog_Banner&utm_content=quote\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-1279\" src=\"https:\/\/i0.wp.com\/www.pacificprime.hk\/blog\/wp-content\/uploads\/2019\/06\/HK-BANNER-Couple.jpg?resize=700%2C303&#038;ssl=1\" alt=\"Get a quote banner\" width=\"700\" height=\"303\" data-recalc-dims=\"1\" \/><\/a><\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>\u201cGet access to better health services\u201d. \u201cSafeguard against financial losses\u201d. \u201cProtect you and your loved ones\u201d. You\u2019ll often hear statements like these in relation to health and\/or life insurance. If you\u2019ve landed on this Pacific Prime Hong Kong article, then chances are you\u2019re not clear on what the two terms mean and what the differences &#8230;<\/p>\n","protected":false},"author":22,"featured_media":2993,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[2],"tags":[792,791,2061,40,912],"class_list":["post-3049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","tag-ban_sin","tag-cta_gen","tag-differences-between-health-and-life-insurance","tag-health-insurance","tag-life-insurance"],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Quick Guide to Health Insurance Vs. 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