As a result of increasing medical expenses, having health insurance has become the need of the hour. However, it is possible that your health insurance may not cover all kinds of treatments and diseases. Therefore, in such cases, availing of a medical loan can prove to be extremely handy. A medical loan is a form of unsecured personal loan.
How is Health Insurance Different from a Medical Loan?
Health insurance and medical loans have a significant difference in that health insurance is purchased beforehand, and the medical loan is taken at the time of medical-related emergencies. Many people consider it a waste to buy health insurance without medical emergency requirements. But the truth is that health insurance is a safety measure that ensures financial security in case any medical emergency strikes.
Under health insurance, you pay the premium and get coverage according to your budget. Still, due to the waiting period of 30 days, you can’t buy the insurance when the emergency occurs. On the other hand, a medical loan is taken as debt when a medical emergency occurs, and you need to pay the interest on the amount you have taken as a loan.
Is Buying Health Insurance Better than Taking a Medical Loan?
There is always a contradiction of views regarding this question. Some people say that health insurance is a good choice. However, many people believe that a medical loan is the better option. Let’s delve in deep regarding this:
1. Instant Availability
During a medical emergency, you would require access to instant funds. A medical loan can be easily availed through a bank or other Non-Banking Financial Companies (NBFC) by following a simple online application process.
2. Short Term Flexible Repayments
The cost covered by health insurance is predefined. Therefore, during an emergency, you can take a medical loan if you feel that your health insurance coverage would not be sufficient to cover the total medical expense. Moreover, when you take a medical loan, you can repay it by choosing a tenure that suits your needs.
3. Access to Treatments at Non-Cashless Hospitals
Every health insurance provider has a list of network hospitals. Network hospitals are those hospitals where the insured can avail of cashless treatments. Therefore, it is always recommended to opt for an insurance provider that has a wide range of network hospitals. However, if your insurance provider has limited network hospitals, availing of cashless treatment might become difficult. These hassles can be eliminated when you take a medical loan. You can use a medical loan for payments at your preferred hospital.
4. Minimum Paperwork
In case of medical exigency, the last thing you want is to file paperwork to raise funds. With leading banks and Non-Banking Financial Companies, medical loans can be availed in minutes through a hassle-free process.
5. No Collateral
Since a medical loan is an unsecured loan, you are not required to keep any collateral with the loan provider.
Also Read: Hidden Health Insurance Benefits That No One Has Told You
A medical loan is an instant solution for a medical emergency. However, if you decide to take up a medical loan, you should look for a deal that offers you competitive interest rates and low processing charges. In addition to that, to have a clear picture of your repayment, you can calculate your EMIs using the EMI calculator for a personal loan.
Though the importance of having comprehensive health insurance should never be underestimated, there are certain added benefits that you can avail yourself of with the help of a medical loan. However, it is recommended that you should research and compare various loan providers before taking up a medical loan. Lastly, you must always read the terms and conditions carefully to avoid any inconvenience in the later stage.
