Health insurance and life insurance policies serve two completely different purposes. Your health insurance policy will help you take care of the cost of medical treatment. It provides you with a safety net to fall back on in case you are diagnosed with an illness or require emergency medical support after an accident. Life insurance policies, on the other hand, are typically used as an investment instrument. They provide the insured individual with a maturity benefit at the end of the policy term. The policies are long-term and usually last for 10 or more years. Additionally, these plans offer financial support to the insured individual’s family members. If something happens to the insured during the policy tenure, the nominee is provided with a payout.