Health Insurance Vs Medical Loan – Which is Better?
Updated On Dec 25, 2021
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Health emergencies are not only a hassle but can cause severe financial stress and burden. This is why it is important to not only take care of one’s health, but also one’s finances regarding it. Two of the best ways to do this is via health insurance or a medical loan. However, there is often a dilemma on which of these is the better choice. Read on to find answers.
Health Insurance Vs Medical Loan: The Differences
The main point of difference between these two are how and when these can be purchased. While a health insurance policy is purchased ahead, regardless of whether there is an immediate medical emergency or not, a medical loan is usually taken out after there has been a medical emergency that requires financial assistance. Therefore, a health insurance policy is largely a preventative measure. It can be based on the anticipated illness or just a basic medical cover that can provide for emergencies. At the time of the financial need, a claim has to be then made against the health insurance to get financial help.
In case of a medical loan, it is usually taken out at the time of need. There is no precautionary measure that is ever present in this case. There is no immediate payment that has to be made, but the amount borrowed must be returned within a certain period of time. There is also an interest that is levied over the basic amount that you have received, and depending on the time it is for.
Health Insurance Vs Medical Loan – Which is Better?
Although both options may seem equally lucrative, a health insurance policy can indeed be the better option under most circumstances. With health insurance, one is always prepared for the worst-case scenario. In case that does end up taking place, a health insurance helps the insured avail of treatment readily and faster than the time that might be taken to arrange for funds if you decide to take out a medical loan. However, it is advisable that one get the medical loan as soon as possible because many of them have waiting periods. With health insurance, you can invest your finances in a regular and useful manner which not only helps you save, but will also help you later on. Moreover, health insurance policies can also be customized on the basis of particular medical needs which might incur more expenses than usual. A health insurance policy can actually be cheaper than medical loans as well. This is because for medical loans, you will not only be paying back your interest amount, but also the principal amount that you had received. On the other hand, for a health insurance policy, you can pay premiums at a steady rate and according to the rate that you can afford for your cover. There are a plethora of options to choose from, when it comes to health insurance policies.
Endnotes
All in all, it is important to take care of one’s finances, especially when it comes to health issues. It is a grave mistake to neglect these concerns till the hour of need as it can not only cause trouble but also become a financial burden. Although it is generally a better option to take a health insurance policy, personal circumstances may differ which is why it is crucial to take note of them.
Also read: Top Star Health Insurance Plans
Benefits of Buying Star Health Insurance Plan
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.
