Life insurance vs health insurance

The journey through life is rarely straightforward, and things don’t always go to plan. That’s why it’s good to consider safeguarding against unforeseen financial difficulties, to protect yourself and your family in case something unexpected happens. 

Life insurance products can offer financial security for you and your loved ones if life was to take an unexpected turn and you became seriously ill, injured or, worse still, were to pass away. In contrast, health insurance can lessen the financial burden of medical costs and treatments. In this article, we’ll tackle the question of life insurance versus health insurance, so you can make an informed decision on whether these products are right for you and your family. 

NobleOak offers a suite of insurance covers designed to provide financial protection in case of death, disability, or critical illness.

NobleOak Life Insurance (also known as Life, or Death Cover) provides a lump sum payment to your beneficiaries if you were to pass away or were diagnosed with a terminal illness. 

This payment, also known as a death benefit, can help your loved ones clear debt and have the financial stability to help maintain the lifestyle they’re accustomed to. Additional features include a funeral advance benefit, and grief counselling benefit. 

Within a life Insurance policy, there are also other covers available through NobleOak: 

• Total and Permanent Disability Cover (TPD) can be taken as an option if you have life cover. TPD provides a lump sum payment if a sickness or injury results in you becoming totally and permanently disabled, preventing you from ever working again. A payment may be used to replace lost income, help reduce debt, and fund lifestyle adjustments.
• Income Protection replaces up to 70% of your regular income if you become unable to work due to illness or injury. Income protection can be valuable if you rely on your income to maintain your standard of living or don’t have sufficient savings or sick leave to cover extended periods of disability.
• Trauma insurance provides a lump sum payment if you are diagnosed with a specified critical illness or medical condition set out in the PDS (e.g. cancer or heart attack). This can help cover medical expenses, treatment costs, and lifestyle adjustments during recovery.

Depending on the type of package and level of cover you select, private health insurance provides for some medical treatments that are not (or only partially) covered by Medicare in a public or private hospital with a doctor of your choice. It can also cover health related services such as dental, optometry and physiotherapy.

Most health insurance providers offer two basic package types: “hospital cover” and “extras”. They can be taken as standalone or combined into one package.

A 2023 industry report showed that 44.9% of people in Australia have private hospital cover, 54.6% have extras coverage, and most people have a combined health insurance policy.

Yes, many Australians have a life insurance policy and a health insurance policy.

Life insurance can mitigate some of the financial strain on your family in the event of your death, total and permanent disability, loss of income if you’re sick or injured and can’t work, or critical illness (depending on which policy you take out). Health insurance, on the other hand, can provide financial assistance to you (and/or your children) for healthcare-related costs such as hospital visits, surgeries, and health related services, such as dental, optometry and physiotherapy.

As you get older and take the time to enjoy the things you’ve worked hard for, life insurance and health insurance may be considered as an important part of your financial plan.

If you’re considering life insurance, the NobleOak Life insurance calculator can help you determine the type and amount of cover you may need, and health insurance companies provide options for people of all ages.