What is the Difference Between Health Insurance and Mediclaim?

Medical inflation is causing health-related expenses to rise rapidly. This makes it necessary to get an appropriate financial protection against medical emergencies. The two most commonly used terms in this space are health insurance and mediclaim. While many people often use them interchangeably, they are not the same. Read on to know more about their differences.

What is the Meaning and Scope of Coverage of Health Insurance vs Mediclaim?

Health insurance is a broad term. It just does not cover hospitalisation expenses but also includes pre- and post-hospitalisation costs, ambulance costs, daycare costs, and alternative treatments. The modern health insurance plans are designed to offer more comprehensive protection as compared to the traditional policies.

Mediclaim is a type of health insurance policy which primarily covers hospitalisation-related expenses. Generally, it reimburses the costs incurred during a stay at the hospital, surgery charges, doctor's fees and room rent, to name a few. The coverage is limited to hospital-related treatments.

What are the Primary Differences Between a Health Insurance Policy and Mediclaim?

Here is a list of the primary differences between a health insurance policy and a medicalism that you need to know about:

● Coverage Benefits

Health insurance plans provide additional benefits such as critical illness coverage, maternity benefits, n-claim bonuses, wellness programs, which make it a more customisable health policy.

Whereas, mediclaim policies only focus on expenses which arise from hospitalisation due to any accidents or illness. The sum insured here is fixed, and claims are paid either through cashless treatment or reimbursement.

● Sum Insured and Flexibility

Health insurance plans have higher coverage options and enable policyholders to increase their sum insured over a period of time. There are some plans which also offer family floater options, where the entire family is covered under a single sum insured with shared coverage benefits.

On the other hand, mediclaim policies offer lower sum insured options and fewer options for policy enhancement. These policies are more straightforward in nature, which makes them more suitable for individuals who want basic coverage.

● Premium Costs

Health insurance premiums have a higher sum insured due to their wider range of coverage and additional features. However, the all-round protection against unexpected medical emergencies justifies their higher premiums in the long run.

Since mediclaim policies offer very limited coverage, their premiums are much lower than those of health insurance policies. These are ideal for people who want affordable and basic health protection.

Which One Should You Choose?

The choice between health insurance and mediclaim insurance depends on your financial goals, coverage expectations and medical history. If you are looking for a basic hospitalisation coverage at an affordable premium, then mediclaim is the ideal solution for you.

However, if you prefer a wider protection which covers multiple medical needs and future uncertainties, getting comprehensive health insurance will be a better choice.

Final Thoughts

Mediclaim policies are a form of health insurance and offer limited hospitalisation-focused coverage. Health insurance plans provide enhanced protection with added flexibility. Whichever type of policy you end up getting, make sure to check the policy wording carefully for optimal protection against medical emergencies.