Differences between life insurance and death insurance

There is some confusion between life insurance and death insurance, and some people think they serve the same purpose. However, each of these insurances protects you in a different way.

What do life insurance and death insurance have in common?

It can be said that both life insurance and death insurance cover the same risk: the death of a person. However, each offers different coverage. There are two types of supplemental insurance. Your family or loved one can be a great help in providing coverage in the event of death, but the amount of coverage each plan offers, as well as its usefulness, coverage, or premium price varies.

What is life insurance and what is it for?

Life insurance was created first and foremost to ensure the financial stability of your family or loved ones in the event of your death. These insurances provide your family with a sum of money that can help them deal with various expenses or debts.

When you buy life insurance, no matter how you use the money, determine the fixed amount you want your family members to receive when you die.

In addition, life insurance includes other coverage such as absolute and permanent disability, which allows the insured (the policy holder) to receive this money in the event of an accident, disabling him and preventing him from working.

What is death insurance and what is it for?

Death insurance is designed to cover the cost of funeral services and death procedures. In other words, in the event of death, this type of coverage ensures that your family is not responsible for paying for burial, cremation, transfer of remains, document management, etc.

It is a value that offers a single fee to cover a specific expense, so your family will not be able to use the money for other things.

1. The main difference between life insurance and death insurance
   Purpose of Compensation: As we pointed out, the main difference between life insurance and death insurance is the purpose of compensation.
2. In the case of life insurance, the compensation can be used to financially support the family, or to cover expenses incurred due to disability, and in the case of death insurance, the insurer's contribution is used entirely to cover the death of the person who employed related costs.
   Coverage of each type of insurance : Another obvious difference is the coverage of each type of insurance. While life insurance can include additional coverage such as absolute and permanent disability, death insurance coverage refers only to the death of the policyholder and its consequences.
   Amount of coverage: In life insurance, the insured decides what funds he wants to insure so that his family members receive them, while in death insurance, the insurer decides how much the insured funds are.
   Awards: In life insurance, the premium to be paid is variable since it varies according to the age of the insured and depends on how much you decide to insure. However, in the case of death insurance, the premium is set and declared by the insurance company.