Understanding the differences between life and health insurance is key to making informed decisions about your financial security. Both play significant roles in a comprehensive financial plan, serving different purposes. Knowing which one to prioritize depends on your personal circumstances, financial goals and life stage.
Generally, when it comes to necessity, health insurance should be your top priority. It can help pay for medical services, including routine, special or emergency care, prescription drugs and more. In other words, it pays for expenses while you are alive. Conversely, life insurance gives your loved ones a lump sum to help pay off any debts or expenses in the event of your passing.