Detailed Comparison Between Health Insurance And Medical Loan

Health insurance is one of the most significant components of our lives. While everyone wants to get the best plan with the most coverage, it is not always possible to do so within their budget. Given that we live in a society plagued by diseases like the coronavirus and lead a sedentary lifestyle, it is the most cost-effective technique for dealing with growing healthcare expenditures.

Physical or mental disorders are the most unexpected emergencies one might face. It takes a lot of time, effort, and money to deal with such situations. Money has been the most difficult barrier to overcome. Because the majority of residents are from the middle or lower classes, they are unable to afford such large costs all at once. To find out the difference between Health Insurance and Medical Loan, read on.

What Is Health Insurance?

Health insurance is a type of coverage that guarantees financial assistance in the event of medical expenses. Health insurance covers all expenditures incurred as a result of a sickness, from doctor's visits to post-hospitalisation payments. Health insurance comes in a variety of forms to fit our needs. These preparations can be used to protect oneself, one's family, one's child, or one's parents. In terms of cost, insurance plans are far more practical. A person just has to meet the eligibility requirements for a given plan, which include a waiting period and an age restriction. The availability of sum insured is a cashless process that saves us time and effort at the last minute. This aids in the preservation of your money and the filing of claims for high medical facility costs.

What Is A Medical Loan?

A medical loan is a type of personal loan that gives financial assistance in times of need. Medical loans are available from a variety of banks and credit organisations. This gives funds, and the borrower receives the cash at a lesser interest rate. This loan can be used in an emergency and is repayable after the specified time period. The borrower must repay the whole amount, including interest, at the time of repayment. The interest rate that a person must pay is determined by their credit score. The repayment option is advantageous to consumers since it allows for a longer payback time or the usage of EMIs.

Health Insurance Vs. Medical Loan

Following are some differences health insurance and medical loan  -

1. Immediate Attention - You can seek rapid hospitalisation with the aid of medical insurance. You won't have to deal with the time-consuming paperwork, home and workplace verification, reference checks, credit score checks, and so on that come with a health-care loan. You must choose a network hospital close to your home and be admitted for treatment as soon as possible.
2. Cashless Treatment  - Cashless therapy is the most significant characteristic of health insurance. In the event of a medical emergency, you can seek care at any network hospital. You do not need to put money aside for hospitalisation. Your health insurance will pay the costs of your therapy and medications. You do not have to pay for your treatment out of pocket, which is not feasible with health care loans.
3. Network Hospitals - None of the medical loans will allow you to use network hospitals. Medical insurance, on the other hand, gives you a variety of network hospital alternatives. You have the option of selecting any that is close to your home. These hospitals are well-equipped, and the physicians and medical personnel are well-trained.
4. Cost Effective - Medical insurance premiums are less expensive than loan interest rates when measured by the amount covered. You can get a particular reduction on the premium if you are healthy and have no pre-existing conditions. In addition, you may be eligible for a tax exemption under section 80D of the Income Tax Act of India 1961 on the premium you pay for your health insurance.
5. Extra Benefits - A medical loan will not provide you with any further benefits. You may extend the coverage for the greatest medical treatment by purchasing add-ons such as no claim bonus super, international second opinion, worldwide coverage, OPD expenditures, and more.
6. Unaffected Credit Scores - Your credit score is affected by any unsecured loan, including a loan for treatment. There's a good chance you won't be able to acquire a loan for a house, vehicle, or anything else in the future. As a result, medical insurance is the greatest option for your health-care demands.

Endnotes

The rate of medical inflation is steadily increasing. It is really tough to deal with the high cost of medical care in such circumstances. To save time and effort, health insurance is the ideal solution for everyone who wants to live a secure life.

Do read - Easy Tips To Save Money On Your Health Insurance Premium

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.