4 min read
Updated on Jul 13, 2022
When it comes to covering the uninformed and unforeseen healthcare issues, do you rely on health insurance plans or would you go for a medical loan? Which is better? Let us find out.
When a health emergency crops up uninformed, you become clueless about what to do and how to manage the situation, especially if you don’t have enough savings as well as any health insurance. So, what do you do in such situations, you may ask. During such a case, all you can do is to take a loan. But do you think a loan is a better option to avail or do you feel that you should stick to health insurance plans? Let us delve into this topic to get a better idea.
Of course, there are some major differences between an insurance plan bought for your health and a medical emergency loan. The key difference is that a health insurance policy is bought in advance before the insured is caught into any health issue. However, when it comes to a medical loan, it is bought at a time when you actually need it because of a medical emergency.
So, one might ask, what is the requirement of a health insurance plan if you can avail a medical loan instead?
The thing is, a Health insurance is bought as a preventive measure to deal with any untoward situation where you require monetary support to deal with an emergency health requirement. With health insurance, you can make sure to receive financial assistance at a time when you face any medical emergency.
Here, you have the liberty to choose the kind of health protection you are looking to have at a budget that you can afford. However, in the case of a health insurance plan you cannot wait till the end moment to buy insurance when you are struck by an emergency. This is because health insurance comes with the clause of waiting period etc. which needs to be fulfilled before you could make a claim. And the insured is expected to buy the insurance and pay the premium continuously to be able to enjoy the benefits of the plan.
But this is not true with loans for medical treatment, which is a debt that you buy from a bank and need to repay within a duration of time. Here you opt for a particular loan amount when you are struck with an emergency and pay off the debt as per the terms of the loan. Here, you need to pay an interest on the amount you take as a loan.
Health insurance is supposed to be a better option as compared to buying a loan because of the following reasons as mentioned below:
However, no such facility is available with a medical loan.
As far as getting financial help for a medical emergency is concerned, you can get it from both health insurance as well as medical loan. But, health insurance is better because it is affordable, offers huge benefits and has many other advantages as compared to buying a medical loan.
Hence, buying health insurance is advised to prepare for any emergencies in terms of medical issues. But before you buy the plan just compare it well online and buy the finest deal.
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