Life insurance is a contract between you and an insurance company. Essentially, in exchange for your premium payments, the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. Your beneficiaries can use the money for whatever purpose they choose. Health insurance is a contract between the insured and the insurance company to provide you with a financial cover in times of medical needs. The Insured pays a fixed premium for his/her health cover. If you have health insurance, you can either get the medical expenses that went through your pocket reimbursed or the insurance company pays the medical expenses directly on your behalf, both depending upon the health insurance policy that’s chosen. Certain health plans also cover the cost of your prescription medicines.