Life Insurance vs. Health Insurance

Life is unpredictable, uncertain, full of ups and downs and that is why it is important to plan for the future. The primary motive of future planning is to safeguard you and you’re loved against the strokes of financial uncertainty. This can be achieved with the help of the right insurance products.

The insurance market is extremely diverse and to choose the right product it is vital to have the right knowledge. Insurance plans and policies that are designed and developed to cover expenses in case of a medical emergency are known as health insurance plans. On the other hand, life insurance plans are designed to cover an individual’s life by providing a sum assured to the nominees of the policyholder.

If you want to secure your future it is crucial to include health insurance and life insurance in Dubai within your portfolio. In this thread, we will shed light on various differentiating factors health insurance and life insurance plans in Dubai so that you have a clearer picture of different insurance products and their uses.

Life Insurance

Life insurance in Dubai provides financial cushioning and support to your loved ones when you are not around to look after their needs. A life insurance Policy is an agreement between the insurance provider and the insurer. In case of any unfortunate event that might lead to the demise or disability of the policyholder, the insurer pays a sum assured to the nominees as a death benefit.

In return to the services offered by the insurance provider, the insurer is supposed to pay a fixed amount at fixed intervals of time known as the premium of the policy. The death benefit that is paid by the life insurance provider reaches the nominees without any deductions. Life insurance in Dubai not only providers financial protection but also provides peace of mind to the policyholder.

Life insurance in Dubai turns out to be extremely useful for people with outstanding financial obligations as it helps to cover the debt. In case of the demise of the policyholder, the debt can be settled using the sum assured by the members of the family which will ease the pressure over the shoulder of your loved ones.

Types of Life Insurance in Dubai

Life insurance policies are majorly classified into two categories-

  • Whole of life Policy- These are a common yet expensive form of life insurance in Dubai. The whole of life policy comes with fixed premiums and sum assured to the nominee of the plan which is typically free from any deduction. Whole of life insurance plans have no maturity benefit associated and are simply designed to mitigate risk associated with one’s life. Whole of life insurance policy in most of the cases allows policyholders to opt for a loan which helps them to manage their expenses.

Term Insurance Policy- The most common affordable and flexible form of life insurance in Dubai is called term insurance policies. Term insurance policies are valid for a given period which can be chosen by the insurance seeker based on their convenience and it is known as the term of the policy. Similar to the whole of life policy there is no maturity benefit associated with these plans. In case the policyholder passes away within the policy period only then the nominees are entitled to receive the death benefit. However, if the policyholder surpasses the policy period there is no maturity benefit or return over the life insurance policy in Dubai.

Health Insurance Policy

Health insurance is another form of insurance product that provides financial assistance in the phases when one needs medical assistance. Similar to life insurance health insurance is also an agreement between the insurer and the insured that provides monetary support to the policyholder and their family members during a medical emergency.

Health insurance plans majorly work in two ways i.e. the policyholder can either get a complete reimbursement of the expenses incurred during the treatment of the patient or they can choose the facility of cashless hospitalization. Health insurance policies cover the expenses of medical treatment along with the cost of the prescribed medicines that are used during and after the treatment.

The modern-day lifestyle is full of hustle and stress which is why there is a sudden increase in the number of lifestyle diseases amongst people. With the right health insurance plan in UAE, you can ensure that you and your loved ones are safe and secure financially whenever an unexpected medical emergency strikes.

Types of Health Insurance Policies

Health insurance policies are usually classified on the basis of the people they cover, here’s a rundown-

  • Individual Health Insurance Policy- is a type of insurance plan that is designed and tailored for a single individual’s seeking to cover their medical needs financially. With an individual health insurance policy, one can safeguard themselves against various ailments like hypertension, organ failure, and accidents, that might arise during one’s lifetime.
  • Family Floater Medical Insurance Policy- The family Floater Medical Insurance policy is a form of health insurance that is developed keeping the needs of an entire family in the center. The plan safeguards and provides protection against various illnesses to all the family members against medical emergencies.
  • Senior Citizen Health Insurance Plans- are customized medical insurance plans that are designed for people falling in the age bracket of 60 or above. The plan encompasses various important physical and physiological needs of senior citizens and offers benefits such as critical care, intensive care, organ donations, etc.

Difference between Health Insurance and Life Insurance


Health Insurance Life Insurance
Health Insurance policies are limited to providing monetary assistance during the course of a medical emergency. Life insurance provides financial assistance in case of the demise or disability of the policyholder.
The premiums are either fixed or flexible based on the type of plan chosen by the policyholder. The premiums are fixed and provide coverage to deal with medical expenses.
Life insurance plans function in the long run Health insurance plans function in the short run
Life insurance is valid for a definite period often known as the term of the policy Health insurance is usually not valid for a fixed term and can be renewed annually.
Life insurance has a feature of repayment of premium in case the policyholder purchases an additional rider. Health Insurance policies have no provision of returning the premium.


In a Nutshell

Life insurance and health insurance both have their pros and cons and are equally important to build a strong portfolio. Insurance seekers should always compare, shortlist, and then choose the plan that suits their needs and fits their budget. One should always remember that the trail of life is uncertain and the only way out is to be prepared.