Medical credit vs. health insurance

Life is full of uncertainties. A medical emergency can occur at any time. Ram, an engineer by profession with a salary of 15 lakh rupees, lived his dream life every year. Unfortunately, he had an accident that caused a brain hemorrhage. The cost of treatment was 20 lakhs. Without insurance coverage, his family had to use a medical loan for his treatment. Not only that, her family also had to go through a lot of physical and emotional trauma. With the increase in medical expenses and the increase in the number of lifestyle-related diseases, the availability of a health insurance policy has become important.
While some people rely on health care policies to pay for medical expenses, some are unprepared and rely on a personal emergency loan. Today, banks and NBFC offer Personal Loans for emergency medical care, which can help a person pay for medical expenses.
If you are also planning to choose between a medical loan or health insurance, read below to find out the difference between the two.

Medical Loan

This is a type of personal loan that helps cover various medical expenses, including the costs of surgery, surgery, and other medical conditions.

health insurance

This is a type of insurance that covers medical expenses based on the amount of coverage chosen by the policyholder. Coverage is provided on the basis of the premium paid, which is determined depending on age, income, existing health status, etc. The cashless treatment center can be used in a hospital in the network of an insurance company. If the hospital is not part of the insurance company’s network, a refund is provided, in which the insurer must provide medical bills and first pay for treatment, and then pay off the bills later.

What’s the difference?

Health insurance is provided as a precautionary measure to combat health inflation and cover medical expenses in the event of an emergency medical strike.
While a medical loan is usually taken only after a medical emergency.
Health insurance covers some diseases after a waiting period of 2 to 3 years. Depending on the chosen insurer and the chosen plan, insurance may or may not be provided for serious diseases such as cancer, kidney failure, etc., given that there are no waiting periods or restrictions for obtaining a medical loan. The loan amount can be immediately used to treat any type of disease.
Health insurance premiums can be paid by issue, and this does not affect the borrower’s credit rating. However, medical loans must be repaid in EMI depending on the duration, the interest rate and the amount of the selected loan.
Health insurance must be renewed every year, that is, the premium must be paid every year, regardless of whether you declare it or not. On the other hand, medical loans are provided only when necessary.
Medical loans can be provided by any self-employed employee. Health insurance can be purchased by anyone who has no history of serious heart attacks, cancer, etc.
It is important to keep in mind that the premium for health insurance increases if the policyholder has pre-existing medical conditions such as diabetes, cholesterol, etc. Depending on the existing condition, the insurance company may charge you a higher premium or refuse coverage.

Medical loan benefits

Quick approval and issuance

Covers all types of diseases

The money can be used to cover all types of healthcare costs

Loan without collateral

Flexible electromagnetic interference durations

Health insurance benefits

Covers hospital bills

Offers tax benefits up to 1 lakh rupees

Saves you from liquidating your savings

Can take advantage of medical insurance in the amount of 1 crore rupees or more


When it comes to buying the best health insurance in India, keep in mind various factors such as coverage, premium, room rent, waiting period, etc., because all these factors can increase your expenses in the future. And if you plan to use a medical loan, keep in mind that the interest rate and duration of stay are higher than the duration of stay, reduce the interest and vice versa. When choosing between them, think about the long term, because buying insurance in old age will increase the amount of premium you will have to pay.

Related Posts