In the case of protecting your financial health and wellbeing selecting the best insurance policy is vital. In India two popular forms of health insurance are Mediclaim or Health Insurance. While both of them aim to cover medical expenses they are different in regards to coverage as well as benefits and the flexibility. Knowing these differences will assist you in making an informed choice that’s tailored to your requirements.
What Is Mediclaim?
Mediclaim is a standard health insurance policy which primarily will cover hospitalization costs. It covers the insured for medical expenses incurred during hospitalization as a result of accidents or illness. The typical coverage includes:
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Hospital Charges Costs associated with the room in which patients are admitted.
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Costs for Surgical Procedures Charges for operations that are performed in hospital.
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Medical Fees Costs for consultations, treatments and other services provided by medical experts.
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Diagnostic Testing Costs for the necessary medical tests performed during a hospitalization.
Yet, Mediclaim policies have certain limitations:
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Limited Coverage It is common for them to not cover outpatient therapies as well as post-hospitalization and pre-hospitalization costs, or for critical illnesses.
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Base of Reimbursement The insured has to pay for medical expenses upfront and then claim reimbursement from the insurance company.
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lower sum insured Mediclaim policies typically provide lower coverage limits in comparison to health insurance policies that provide comprehensive coverage.
What Is Health Insurance?
Health Insurance, on the other hand, provides greater protection. It does not just cover hospital expenses, but also provides coverage to other medical expenses including:
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Inpatient Services The medical services don’t need hospitalization.
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Pre- and Post-Hospitalization expenses The costs that are incurred before and following hospitalization.
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Childcare Methods Treatments that need less than 24 hours hospitalization.
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Critical illnesses The coverage is for serious health issues like heart attack, cancer, etc.
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The Maternity Benefits expenses related to the birth of a child and infant care.
Health Insurance policies provide several advantages:
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Pay-for-treatment A lot of policies offer hospitalization with cash at hospitals in the network and reduce the financial burden in times of emergency.
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Higher Sum Insurance The majority of them offer higher coverage limits and greater financial security.
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Extra Benefits Option to add additional protections such as Critical illness, Maternity and personal accidents.
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Tax benefits The premiums you pay can be tax-deductible pursuant to Section 80D in the Income Tax Act.
Key Differences Between Mediclaim and Health Insurance
| Feature | Mediclaim | Health Insurance |
|---|---|---|
| Coverage | The primary reason for hospitalization is to treat the patient. | Comprehensive medical expenses |
| Scope | Limited | Extensive |
| Claim Process | Reimbursement | Refunds and cashless |
| Sum Insured | Lower | Higher |
| Premiums | Affordable | Higher due to wider coverage |
| Add-ons | Limited | Multiple options available |
| Tax Benefits | Yes | Yes |
Which One Should You Choose?
The decision of Mediclaim or Health Insurance depends on various aspects, such as your health requirements along with your family history and financial circumstances.
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Choose to apply to Mediclaim If:
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You’re looking for the most basic insurance to cover hospitalization costs.
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You are on a budget for insurance costs.
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There is no need for insurance for treatments outside of the hospital or serious diseases.
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Opt to Health Insurance if:
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You want a comprehensive insurance plan that includes outpatient care including daycare services, as well as serious ailments.
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You’d prefer cashless options to cut down on out-of-pocket expenses.
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You’d like to be able to add riders or modify your policy to meet your requirements.
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Conclusion
Each of Mediclaim both Mediclaim and Health Insurance have their unique advantages. While Mediclaim is a cost-effective way to pay to hospital expenses, Health Insurance provides a more complete method of managing healthcare expenses. Examining your personal health needs and family medical history and financial capabilities will assist you in selecting the best plan for your requirements. Make sure to choose the best health insurance policy is a crucial step to safeguarding your health and financial future.
