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Health Insurance Vs. Mediclaim: Know The Key Differences

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Health Insurance Vs. Mediclaim: Know The Key Differences

‘Only a tool, money. It will transport you wherever you want but won’t take your place as the driver.’ – Ayn Rand.

We should all learn to manage money carefully because it is a valuable instrument. Personal finance is about making wise financial decisions to reach your goals and lead the life you want. One of the most critical areas of personal finance is managing your healthcare costs. People frequently conflate health insurance and mediclaim in India. 

How Does Health Insurance Work?

A health insurance policy is a legal agreement between you and the insurance provider that secures payment for your hospital stays, doctor visits, and other associated expenditures. To cover the insured person’s medical costs, the policyholder pays an insurance premium. It offers protection against various medical expenses, such as ambulance fees, pre- and post-hospitalisation costs, and hospitalisation costs. Critical illnesses like cancer, heart disease, etc., are also covered by some health plans.

What is Mediclaim?

On the other hand, Mediclaim is a form of health insurance plan that provides coverage for hospitalisation costs up to a certain amount. Mediclaim policies provide limited coverage and do not pay for severe illnesses, pre- and post-hospitalisation expenses, or ambulance costs. Therefore, they are less expensive than health insurance policies and appropriate if you want to cover hospitalisation costs.

Key Disparities Between Mediclaim & Health Insurance

Health insurance offers comprehensive protection against medical costs associated with pre- and post-hospitalisation, expenses related to severe illnesses, etc. On the other hand, a mediclaim policy only covers hospitalisation costs.

  • Cost: Because health insurance policies give a more comprehensive range of coverage, they are more expensive than mediclaim policies.
  • Claim Settlement: Compared to mediclaim policies, the process for settling claims under health insurance policies is more involved. Health insurance policies have waiting periods, during which you can’t claim for specific medical illnesses. There is no waiting period for the coverage of Bajaj Allianz’s mediclaim policy, and the claim settlement procedure is quicker.

Before making a choice, it’s essential to comprehend how health insurance and mediclaim policies differ. Health insurance plans for families are perfect for comprehensive coverage of loved ones, including medical costs, pre- and post-hospitalization expenses, ambulance fees, and severe conditions. A mediclaim policy is a better choice if you only need to pay for your hospitalisation costs and are on a restricted budget. Always remember that “wealth is health” and that maintaining financial security and excellent health requires prudent healthcare spending management.

Understanding the key differences between health insurance and mediclaim is crucial in safeguarding one’s healthcare needs. 

Health insurance covers extensive medical expenses, while mediclaim mainly focuses on hospitalisation costs with limited coverage. Health insurance provides flexibility, customisation, and added benefits, whereas mediclaim plans are simpler with lower premiums.

Differentiating between health insurance and mediclaim is essential for making informed choices in healthcare coverage. Health insurance offers comprehensive coverage beyond hospitalisation, while mediclaim focuses primarily on hospital expenses. The decision between the two should be based on individual healthcare needs and financial considerations. Taking the time to evaluate these distinctions ensures that you select the most appropriate option to safeguard your health and financial well-being.

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