Medical personal loan or medical loan is the personal loan which is provided by banks to meet the medical emergency needs of people. It can be used to pay for medical facilities which aren’t covered under health insurance. It is unsecured in nature and doesn’t require any collateral to be kept as security. These loans are approved fast and the borrower has full authority to use the amount as they want. Also, they can borrow as much amount as is required.
Health insurance, on the other hand, is an insurance product and has various terms and conditions attached to it. It encompasses the cost of a few medical procedures and usually, the insurance company directly pays to the hospital.
When compared, a medical loan outstands health insurance on several parameters. The various benefits of getting a medical personal loan over health insurance are:
- Quick disbursal and Fast loan approval
Medical personal loans are approved faster and the money is quickly disbursed in the account of the borrower in comparison to health insurance. The documentation and procedure is also less hassle-some than insurance. This makes it very convenient and comfortable during the need of the hour.
- Interest v/s Premium
In health insurances, a decent amount of premium is paid in advance. There is always uncertainty whether or not this amount will be used before the renewal date or not. The lenders, on the other hand, are offering competitive rates for a medical personal loan with best repayment terms and conditions.
Health insurances do not cover various medical procedures and have vague terms and conditions which are not clearly defined. Sometimes, despite having health insurance, people have to pay at the hospital from their pocket. On the other hand, the amount from the medical loan can be used for undergoing any medical procedure including cosmetic surgery, dental treatments, AIDS, STDs, Cancer, fertility, etc which are usually not covered in health insurance. A medical personal loan takes care of all medical expenses irrespective of ailment and procedure.
A health insurance amount once used cannot be reused again the same year or till it has been renewed again. The premium amount increases too. On the other hand, a medical loan can be taken as much as is needed.
A medical loan provides you cash in hand which can be used for any procedure, consultation or surgery. Health insurance charges high premium amounts and also do not give coverage to some key ailments and surgeries. The amount from the medical loan can be used as per own jurisdiction. One can also save some amount for the future.
- Risk Factor
Health insurance companies are smarter as they easily give insurance to healthy individuals with no medical history. High-risk individuals with potential medical history are often declined insurance because of the risk factor involved. Medical personal loan, on the other hand, can be taken by anyone with or without any medical history. The health condition is no criteria in availing a medical personal loan.
- The Dilemma of Amount
One can apply for as much medical loan as is required. The loan amount can be used for different purposes like paying for medical bills, doctor’s consultation charges, admission charges in hospital, surgery, medication, equipment etc. Whereas under health insurance, only a few procedures and ailments are covered. The patient is responsible for all other expenses. Also, very few health insurances take Ayurveda or Homeopathy into consideration. One can use the amount from medical loan to get these alternative medicine treatments.
Health insurance policies are accepted only in partner hospitals. Whereas, one can opt for any hospital with a medical loan.
Thus, while Health Insurance might be beneficial for some, it is imperative to weigh all the aspects before committing yourself to either health insurance or medical personal loan. LoansJagat offers an excellent platform for choosing the best medical loan by comparing different lenders for the most attractive rate of interest, quick approval and fast disbursal.