Why is Health Insurance Better than a Medical Loan?
Physical or mental illnesses are the most sudden emergency one can encounter in life. To deal with such conditions, it takes a lot of time, effort, and money. Money has been the greatest struggling factor of all. As most of the citizens belong to middle or lower strata, they are unable to bear such huge expenses in one go. So health insurance seems to be of great help.
What is Health Insurance?
Health insurance is a coverage plan assuring for financial support at medical expenditure. Any expenses arising from an illness starting from doctor’s consultation to post-hospitalization charges are covered under health insurance. Health insurance includes various types of plans suiting our needs. These plans can be availed for personal, family, child, or parents’ security. The plans offered by insurance are much feasible in terms of money. An individual has just to clear the eligibility criteria that include a waiting period and age limit regarding a particular plan. The availability of sum insured is a cashless process that saves us from the last-minute hassle. This helps in keeping your savings intact and claims for high expenses of medical facilities.
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What is a Medical Loan?
A medical loan is a personal loan that provides financial support at the time of emergency. Many banks and finance companies offer medical loans. This provides funds, and the money is given at lower interests to the borrower. During an emergency, this loan can be taken for use and is payable after the defined period of time. At the time of payback, the borrower has to pay the entire amount with the interest amount included. The interest rate that one has to pay depends upon their credit score. The repayment option is a boon to users as it gives a tenure of longer periods or the option of EMIs is also available.
Why is Health Insurance Better than a Medical Loan?
Health insurance is considered majorly over medical loans because of various benefits.
1. Immediate medical facilities: At tough times, an individual strives through a lot of mental pressure. To ease some of it, health insurance provides easy accessibility to your near hospitals. There you just have to get admission as soon as possible without worrying about the cash arrangement.
2. Cashless treatment: It is very difficult to arrange cash for medical treatment at the last moment. This often results in mishappenings. One can easily avail of the medical facilities without waiting for their cash arrangement and transaction. Health insurance provides a cashless treatment where the company deals with the hospital directly regarding payment.
3. Having network hospitals: A medical loan does not provide you with a network hospital while health insurance helps you in approaching the nearest hospital. These hospitals are always ready for emergency cases with well-equipped facilities and highly qualified doctors.
4. Unaffected credit scores: If a person misses repaying the loan, their credit scores get affected. This provides a huge difficulty in availing the next loan. Health insurance does not affect your credit scores.
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Conclusion
The surge of medical inflation is rising day by day. Under such conditions, it is very difficult to deal with the high expenditure for medical facilities. To save the effort, health insurance is the best option anyone can opt for and lead a secured life ahead.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
