Mediclaim And Health Insurance: What’s the Difference?
Mediclaim and health insurance are utilized interchangeably. But the difference between Mediclaim and health insurance is huge. Many individuals make a lot of mistakes when buying health insurance. It’s because they assume health insurance to be a Mediclaim policy, which is not the truth. These two terms have their definitions, and through this article, you can address that issue easily.
What’s a Mediclaim?
Mediclaim stands out as an insurance plan that provides specified financial security against all the health and medical expenses. You can view it as a pocket-friendly method to address all your emergency healthcare costs with no hassle. But when you compare a health insurance plan with it, you will find that it limits itself towards the expenses for hospitalization.
How exactly does the Mediclaim work?
In India, the Mediclaim will cover hospitalization expenses for treatments on specified health conditions and accidents. Apart from that, the Mediclaim insurance comes with a pre-decided sum assured, and premium gets formulated based on the assured sum, geographical location, and age. When it comes to claiming a settlement, you will receive it in the form of a reimbursement and cashless treatment.
If you want to buy the Mediclaim, you can do so in the form of a family floater basis or individually. Under the family floater one, the insurance will cover all the medical expenses for children, spouse, and parents. Through the Mediclaim, you will also get a tax exemption under section 80D of the Income Tax Act 1961.
Health Insurance: What is it?
Health insurance stands out as insurance that will cover surgical and medical costs. The policyholder must pay the cost from his/her pocket, or the insurance agency will settle the expenses directly from their side. The features and benefits of the health insurance are provided according to the conditions and terms of the policy. A health insurance cover is extensive and can be a lot more expensive when compared with Mediclaim.
How does the health insurance policy work?
The health insurance plan will provide coverage for critical illnesses along with 30 other conditions or diseases. When you have health insurance, you will receive a benefit during the time of renewal once the claim-free year comes to an end. This benefit stands out as the No Claim Bonus or NCB. On the other hand, you will come across some health insurance plans with a co-payment option.
It will lessen the insurance premium in the form of a particular percentage cost, which the policyholder pays. The remaining sum gets paid through the insurance company. Also, the health insurance policy provides tax benefits under section 80D of the Income Tax Act.
Mediclaim vs. Health Insurance: What’s the difference?
The main difference between health insurance and Mediclaiim is that health insurance will provide you with many add-ons, and Mediclaim will not. Apart from that, health insurance offers broad coverage that extends the expenses for hospitalization. But Mediclaim will only provide coverage to illnesses. Even though Mediclaim offers range but has no extensibility, health insurance offers much-needed flexibility to the policyholders.
Also Read: The Basic Principles of Project Management
Mediclaim and health insurance: Which one to choose?
Whether you want health insurance or a Mediclaim cover will depend on your budget and requirements. Both are designed to cover the medical and hospital expenses but come with their own set of benefits and features. No matter what you choose, make sure to do your research well before making the final move.
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