Medical emergency can come anytime. Medical inflation is increasing with time. Because of which it is difficult for most people to afford quality medical treatment at the right time.
People often depend on health insurance schem es for medical expenses. Many people also take medical loan for this. The major difference between a health insurance policy and a medical loan is that health insurance is bought beforehand whereas a medical loan is always taken after a medical emergency. Many times people think that if they do not need to spend every time for medical emergency, then why should they buy health insurance. But we must understand that health insurance is bought as a precautionary measure. By taking a health insurance, you are already prepared for any kind of health emergency. In this, you choose the coverage and pay the premium according to your budget. But if you wait for a medical emergency to buy health insurance, you may not be able to claim as most health plans come with an initial waiting period of 30 days. Along with this, you have to buy health insurance in advance only. Along with this, its premium also has to be paid regularly. If you do not do this then you will not be able to claim.
what is medical loan
A medical loan is a type of loan. You have to repay it within a set period. You can select the loan for the amount that you may require in case of a medical emergency. However, if you take a loan from a bank or financial institution, then you have to pay the interest rate.
difference between the two
Health insurance plans give you the facility to avail medical services immediately. Because it is issued immediately. When you face a medical emergency condition, you only need to file a claim. And your insurance provider transfers the amount to your account for your medical expenses. Buying a health insurance policy is more cost-effective than taking a medical loan. You have to pay only a small amount as annual premium for your health insurance policy. Apart from this, you can also avail several renewal benefits like cumulative bonus which reduces your premium. But in the condition of taking a medical loan, you have to pay EMI for years. One of the major advantages of buying a health insurance policy is that you can avail cashless treatment in network hospitals. Network hospitals are those hospitals which have a tie-up with your insurance company. These hospitals provide the facility of cashless treatment to the insured. Maintaining a good credit score is essential for availing a loan. If you were planning to take a loan to buy a house or a car for a long time, suddenly taking a medical loan can pose a threat to your credit score. If for some reason you miss the EMI, then your credit score gets adversely affected. That’s why taking health insurance is the best option for you. Another reason to take a health insurance policy instead of a medical loan is that health insurance helps you save tax. As per the Income Tax Act, Section 80D, the premium paid for health insurance policy is eligible for tax deduction. Also, when you buy a health insurance scheme, apart from that coverage, you also get some extra benefits. Under health insurance, benefits like annual health checkup facility, cumulative bonus, long term policy discount, online discount etc. are available without any extra cost. But such benefits are not available on taking a medical loan.
