Health Is Wealth!!!
This age-old popular saying is something we have heard and believed all our life. Health, undoubtedly, is an important aspect of life. However, even after practicing a healthy lifestyle, we may face health challenges in the future.
Considering the rise in lifestyle diseases and skyrocketing healthcare costs, it has become very important for every individual to have a financial backup in case of an unfortunate medical emergency. This can be achieved with the help of a health insurance plan.
But there is a misconception regarding the same- most people believe that a mediclaim policy and a health insurance policy are alike. Both these products indeed aim at a similar objective, however, there are a lot of differences.
Read along to understand the meaning of health insurance and mediclaim policy and their key differences.
What is health insurance?
Health Insurance offers complete coverage against any health contingencies that include in-patient care, pre & post hospitalization expenses, domiciliary hospitalization, critical illness cover, and many more.
Let's take a look at the features of health insurance policy-
- Most of the health insurance plans come with extensive coverage that can be enhanced as per the need and requirements of the policyholder.
- Generally, health insurance companies offer several discounts with their policies, such as a family discount, loyalty discount, no-claim bonus, long-term policy discount, etc.
- Policyholders have an option to enhance their cover with the help of several riders like critical illness cover, maternity and newborn child benefit, accidental cover, among others. The list of riders may vary as per the chosen company.
- Premiums paid under health insurance qualify for tax deduction under Section 80D of Income Tax Act, 1961.
What is a mediclaim policy?
Mediclaim Policy is a type of health cover that only covers hospitalization-related expenses for a pre-specified sum. It offers limited coverage and the expenses (other than hospitalization) are to be borne by the insured himself.
Let's take a look at the features of mediclaim policy:
- Mediclaim policy is one of the cost-effective ways to avail protection against medical emergencies.
- Most of the mediclaim plans come with lifelong renewability.
- Premiums paid under mediclaim policy qualify for tax deduction under Section 80D of Income Tax Act, 1961.
Mediclaim Vs Health Insurance
Let's explore how health insurance is different from mediclaim insurance:
- Mediclaim policies provide coverage for a pre-decided cover, which includes hospitalization expenses for a specific illness or accident. On the other hand, health insurance offers comprehensive coverage that is not just limited to hospitalization expenses but also covers other expenses.
- With a mediclaim policy, a policyholder can't avail of add-ons. However, in health insurance, policyholders can take the help of add-ons to enhance their base cover.
- The sum insured under mediclaim policy usually doesn't exceed Rs. 5 Lakhs. Whereas, one can choose a sum insured up to Rs. 1 Crore under a health insurance plan.
- Mediclaim policies do not provide much flexibility for choosing features and benefits, but in a health insurance plan, one can customize it as per his needs.
Health insurance provides comprehensive and wider coverage when compared to mediclaim policies. On the other hand, mediclaim is a good option for those people who want to save on premium payments. Therefore, before choosing between the two, identify your and your family's healthcare needs, and make a fair decision.