Health insurance and mediclaim are two of the most common types of insurance policies. Both are designed to provide financial assistance to individuals and families for medical expenses. Although the terms are often used interchangeably, there are subtle differences between the two.
Health insurance covers all types of medical expenses, including preventive care, while mediclaim is designed to help pay for specific medical expenses. In this article, we will delve further into the differences between these two insurance policies, and how they can help you cover medical expenses.
What is health insurance?
Health insurance helps individuals and families protect their financial security while receiving the medical care they need. It is one of the most important investments people can make in their overall health and well-being.
Health insurance typically covers preventive care, such as annual checkups, routine immunizations, and other screenings, as well as more serious medical care, such as surgeries, hospitalization, and prescription drugs.
Having health insurance can provide peace of mind, knowing that if a medical emergency arises, your medical expenses will be covered. It also helps individuals and families budget for medical expenses, as the cost of health care can be expensive and unpredictable.
What is mediclaim?
A mediclaim policy is a type of health insurance that reimburses the policyholder for medical expenses incurred in treating a medical condition. It is designed to provide financial protection against the enormous costs of medical treatment, especially in cases of major illnesses, accidents, or chronic health issues.
Under a mediclaim policy, the policyholder can submit the medical bills to the insurance company for payment, or opt for the cashless treatment option. This option requires the insurance company and hospital administrator to settle the medical bills between them without the policyholder having to pay a dime.
How is health insurance different from mediclaim?
Health insurance provides coverage for a variety of medical-related costs, including preventive care, doctor visits, diagnostic tests, and medications. On the other hand, mediclaim is a type of health insurance specifically for hospitalization. It covers the cost of hospital stays, treatments, and related expenses.
Mediclaim insurance plans do not provide any regular monthly payments if the policyholder is diagnosed with any major illness or condition. On the other hand, some health insurance plans will provide a regular monthly payment from the base sum assured if the policyholder is diagnosed with a predetermined major illness or condition, over a fixed period of time.
Mediclaim insurance plans provide a cashless facility, i.e. direct reimbursement to the healthcare provider, only at network hospitals. In non-network hospitals, you have to pay and the insurer will reimburse you later. On the other hand, health insurance plans pay the money to policyholders directly, often even prior to treatment.
Add-ons and riders
Health insurance typically offers more options for customization than mediclaim. Riders can be added to a health insurance policy to personalize the coverage and meet individual needs. These riders may include additional coverage for specific conditions, hospitalization, and even long-term care. In contrast, mediclaim plans generally do not offer riders and are more limited in their coverage options.
Health insurance and mediclaim are two different types of insurance plans designed to provide financial protection for medical expenses. While both plans can help you cover medical expenses, it is important to consider your individual needs and priorities when choosing the right insurance plan for you.