There are numerous unknowns in life. A medical emergency can occur anytime. Read on to learn the differences between medical loans and health insurance if you’re deciding between the two choices .
While some people depend on their health insurance to cover medical costs, others are unprepared and rely on getting a personal loan in an emergency. In the modern era, banks and NBFCs provide personal loans for medical emergencies that can assist a person in covering medical costs. Now, manage all aspects of your health insurance using a health insurance app in India.
Health Loan
Various medical costs, including those associated with operations, surgeries, and other medical conditions, can be covered with the help of this type of personal loan.
Medical Insurance
Based on the level of coverage that the policyholder selects, this type of insurance pays for medical expenses. The level of coverage is determined by the premium, which is set based on factors like age, income, and pre-existing conditions. The insurance provider’s network hospitals offer a cashless treatment option. If the insurance provider’s network does not cover the network hospital, reimbursement is shown; however, the insurer must provide medical bills, cover the cost of the treatment upfront, and then reimburse the costs later.*
What’s The Distinction?
Mediclaim with OPD cover is bought as a preventative measure to fight medical inflation and cover medical costs in a medical emergency. Whereas a medical loan is typically only taken in the event of an emergency.
After a two to three-year waiting period, some illnesses are covered by individual health insurance. Acute diseases like cancer, kidney failure, etc., may or may not be covered depending on the insurer and selected plan. However, a medical loan has no waiting period or other restrictions. Any medical condition can be treated right away with the loan amount. Health insurance premiums can be paid in instalments, not affecting the borrower’s credit rating. However, medical loans must be repaid in EMIs based on the loan amount, tenure, and interest rate. Every year, health insurance must be renewed. In other words, the premium must be paid annually whether or not a claim is made. Medical loans, on the other hand, are only used when necessary. *
Benefits Of Medical Loans
- Rapid approval and payment
- Includes all medical conditions
- Any medical expense can be covered by money.
- No-collateral loan
- Adjustable EMI terms
Benefits of Health Insurance Plans
- Covers medical expenses
- May offer tax advantages up to Rs. 1 lakh **
- Prevents you from spending all of your savings ##
Consider factors like coverage, premium, room rent, waiting period, etc., when choosing the ideal health insurance in India because they can all increase your out-of-pocket costs. Additionally, remember that a longer loan term results in a lower interest rate and vice versa if you choose a medical loan. When deciding between the two, consider the long term because buying health insurance online as you age would result in higher premiums.* A health insurance app in India helps you manage your insurance in a hassle-free manner on the go.
Get insured anytime, anywhere! Check out the Bajaj Allianz General Insurance website to learn more and download the app now.
* Standard T&C Apply
** Tax benefits are subject to change in prevalent tax laws.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
