“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” - Ayn Rand. Money is an important tool that we all need to manage wisely. Personal finance is about making informed decisions regarding your money to achieve your goals and live the life you want. Managing your healthcare expenses is one of the most crucial aspects of personal finance. In India, many people often confuse health insurance with mediclaim.
What Is Health Insurance?
Health insurance is a contract between you and the insurance company that promises to pay for your medical expenses, hospitalization, and related costs. The policyholder pays the insurer a premium to cover the insured person's medical expenses. Health insurance provides coverage against a wide range of medical costs, including hospitalization expenses, pre-and-post-hospitalization expenses, ambulance charges, etc. Health insurance also covers critical illnesses like cancer, heart disease, etc.
What Is Mediclaim?
Mediclaim, on the other hand, is a type of health insurance policy that covers hospitalization expenses up to a specified limit. Unlike health insurance, mediclaim policies have limited coverage and do not cover pre-and-post-hospitalization costs, ambulance charges, or critical illnesses. Hence, mediclaim policies are more affordable than health insurance policies and are suitable for individuals who want to cover their hospitalization expenses only.
Key Differences Between Health Insurance & Mediclaim
Scope Of Coverage: Health insurance provides comprehensive coverage against medical expenses, pre-and-post-hospitalization expenses, critical illnesses, etc. On the other hand, mediclaim policies provide coverage for hospitalization expenses only.
Cost: Health insurance policies are more expensive than mediclaim policies because they offer a broader scope of coverage.
Claim Settlement: The claim settlement process in health insurance policies is more complicated than in mediclaim policies. Health insurance policies have a waiting period, which means you cannot claim expenses for certain medical conditions for a specific period. Mediclaim policies do not have a waiting period, and the claim settlement process is faster.
Health insurance and mediclaim policies serve different purposes, and it's essential to understand the differences between them before deciding. For example, health insurance is the right choice if you want comprehensive coverage for your medical expenses, pre-and-post-hospitalization expenses, ambulance charges, and critical illnesses. On the other hand, if you want to cover your hospitalization expenses only and are on a tight budget, then a mediclaim policy is the better option. Remember, "the greatest wealth is health," and managing your healthcare expenses wisely is the key to maintaining good health and financial stability.
