Health Insurance & Income Protection: What's the Difference?

When it comes to the insurance industry, many people lack trust and are easily confused. There is ample information out there to help you along the way, but it’s really filtering through all of the information to find what you need that’s the hard part. In regards to health insurance and income protection insurance, these two are very different types of insurance.

Health insurance

Health insurance can be taken out by singles or families. It allows people to have the freedom to choose their own doctor when they fall ill and need treatment in hospital. It covers expensive medical bills and doctors appointments, which as we all know can add up very quickly. Depending on the plan you take out, you can also use your health insurance to visit specialist doctors like chiropractors for a heavily discounted or free rate.

Income protection insurance

Income protection insurance pays you a monthly benefit, if you fall sick or injured and cannot work. Unlike Work Cover which will only cover you for accidents at work, income protection provides you with cover 24 hours a day.

Once your set waiting period has passed, you are able to start claiming on your insurance. It will pay you out up to 75% of your income, each month until you recover.

Income protection can be used at your discretion to cover anything from medical bills, to mortgage repayments to your weekly food shopping.

There are many differences between health insurance and income protection, even though there are many differences this does not mean that one is better than they other.  They are both equally important.  However, if you are comparing the two and trying to decide which one to take out, you need to take into account your individual situation. If you can afford it, both are very important and viable options for insurance.

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