Mediclaim vs. Health Insurance: New health problems are emerging in today’s lifestyle, and it’s impossible to predict when a health emergency may occur.
Therefore, it is essential to have an excellent medical or health insurance policy to avoid potential financial problems in the future. While Mediclaim and Health Insurance may sound similar, their health coverage differs significantly.
Mediclaim: Mediclaim functions similarly to a health insurance policy, providing coverage for general medical and treatment expenses in the event of illness or injury.
With Mediclaim, the policyholder must initially pay the costs and later seek reimbursement by submitting medical bills.
Benefits of Mediclaim:
- Covers expenses incurred during hospitalization due to illness or injury, alleviating financial burdens.
- Provides health coverage for the policyholder’s spouse, children, and sometimes dependent parents.
- Allows cashless treatment in network hospitals, eliminating the need for advance payments.
- Typically, it has lower premiums and offers various tax exemptions, enabling better healthcare with reduced costs.
Health Insurance: Health insurance offers broader coverage than Mediclaim. Individuals or families can obtain health insurance by paying regular premiums to an insurance company.
Health insurance coverage includes various medical expenses, such as doctor consultations, hospital stays, surgeries, and medications.
Benefits of Health Insurance:
- Covers major medical expenses, including hospitalization, daycare, and home care.
- This includes ambulance fees and provides financial comfort during emergencies.
- Offers coverage for critical illness plans and add-ons, protecting against serious diseases such as kidney problems, organ treatments, bone marrow transplants, and strokes.
- Many insurance companies offer cashless claim services, alleviating financial pressure during medical emergencies.
- Additionally, health insurance premiums are exempt from tax under Section 80D of the Income Tax Act of 1961.
Mediclaim Vs. Health Insurance:
1. Coverage:
Mediclaim provides coverage for specific health-related expenses, with slightly less coverage than health insurance.
Health Insurance offers comprehensive coverage for various medical expenses, including hospitalization, outpatient care, diagnostics, maternity, and preventive care.
2. Policy Term:
- Mediclaim: Requires annual renewal.
- Health Insurance: Allows annual or long-term policy subscriptions for extended coverage.
3. Premium:
- Mediclaim: Generally has slightly lower premiums with commensurate coverage.
- Health Insurance: Typically entails slightly higher premiums than Mediclaim, offering broader coverage.
4. Claim Process:
Mediclaim: This usually involves reimbursement, requiring the insured to submit medical bills for payment.
Health Insurance: This type of insurance offers cashless claims, allowing the policyholder to receive treatment without upfront payments, with the insurance company directly paying the hospital.
5. Waiting Period:
- Mediclaim: Has a specific waiting period before coverage becomes available.
- Health Insurance: Also has a waiting period before full coverage is attained.
6. Policy Benefits:
Mediclaim does not have riders or add-ons, limiting coverage expansion, but it may provide critical illness coverage and accidental death benefits.
Health Insurance allows for the purchase of riders and add-ons tailored to individual health needs, providing broader coverage and additional benefits such as wellness programs and maternity coverage.
Which is the best choice? The decision between mediclaim and health insurance should be based on your financial situation and health needs.
Opting for health insurance with comprehensive coverage can help you avoid financial hardships in the future.